India Bans Sugar Exports With Immediate Effect Until 30 September 2026

India banned all sugar exports on 13 May 2026 with immediate effect, reversing an earlier policy that had permitted limited shipments as the government moved to protect domestic supplies amid a second consecutive year of production falling short of consumption.

The Directorate General of Foreign Trade amended the export policy for raw, white and refined sugar from restricted to prohibited, effective until 30 September 2026 or until further orders.

India, the world's second-largest sugar exporter after Brazil, had earlier allowed mills to export up to 1.59 million metric tonnes, expecting production to exceed domestic demand. That calculation has changed.

Output is now projected at 27.5 million tonnes for the year, insufficient to meet consumption for the second year running as cane yields weaken in major growing regions. Of the 1.59 million tonnes approved for export, about 700,000 tonnes have already been shipped.

Why The Ban Was Imposed

Weakening cane yields in key producing states have pushed production estimates lower through the season.

El Niño weather conditions are also raising concerns about the coming monsoon, which could further reduce next season's crop.

With domestic supply already tight, the government moved to stop outflows before stocks fell further.

Market Impact

Global sugar prices jumped immediately after the announcement. New York raw sugar futures extended gains to over 2% while London white sugar futures climbed 3%. Brazil and Thailand are expected to benefit, picking up shipments to Asian and African buyers that would otherwise have come from India.

Domestic sugar stocks will be in focus following the notification. Balrampur Chini Mills, Shree Renuka Sugars, Triveni Engineering and Industries, Dalmia Bharat Sugar, Bajaj Hindusthan Sugar and Avadh Sugar and Energy are among the top names.

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Exemptions To The Order

The ban includes several carve-outs for shipments already in the pipeline:

• Consignments where loading had begun before the notification was published in the Official Gazette

• Shipments where a bill had been filed and the vessel had berthed, arrived or anchored at an Indian port

• Sugar already handed over to customs or a custodian before the notification

• Exports to the European Union and the United States under tariff rate quota agreements, subject to designated public notice procedures

• Shipments authorised under the Advance Authorisation Scheme

If the prohibition is not extended past 30 September, the policy reverts to its previous restricted status.

Sources:

NDTV

Livemint