New Delhi: In a significant move aimed at safeguarding domestic availability and maintaining price stability, the Centre has prohibited the export of sugar with immediate effect till September 30, 2026, or until further orders. The Directorate General of Foreign Trade (DGFT), under the Ministry of Commerce and Industry, issued a notification on Tuesday amending the export policy of sugar from “Restricted” to “Prohibited”.
The notification applies to raw sugar, white sugar and refined sugar under ITC (HS) Codes 1701 14 90 and 1701 99 90.
The decision comes at a time when the government is closely monitoring food inflation trends, domestic sugar availability and the broader impact of erratic weather patterns on agricultural output. By moving sugar exports into the “Prohibited” category, the Centre has effectively shut the window for routine overseas shipments, while still retaining limited strategic exceptions.
According to the notification, “Export of Sugar is prohibited with immediate effect till September 30, 2026, or till further orders, whichever is earlier.”
However, the government has carved out specific exemptions for exports to the European Union and the United States under CXL and TRQ quota arrangements. Shipments under the Advance Authorisation Scheme (AAS) will also continue to be allowed as per existing provisions of the Foreign Trade Policy and Handbook of Procedures, 2023.
The notification further stated that Government-to-Government exports to meet the food security needs of other countries may continue subject to approval by the Government of India and based on requests from foreign governments.
In addition, consignments already in the export pipeline have been protected from disruption. These include shipments where loading had commenced before the date of notification, consignments for which shipping bills had already been filed and vessels allocated by port authorities, as well as sugar already handed over to Customs or custodians with verifiable electronic records.
The government has also clarified that if the prohibition is not extended beyond September 30, 2026, the export policy will revert from “Prohibited” back to “Restricted”.
The notification was issued with the approval of the Minister of Commerce and Industry and signed by DGFT Director General Lav Agarwal.
The latest decision signals a calibrated balancing act by the Centre, maintaining flexibility for strategic and treaty-bound exports while sharply prioritising domestic supply management amid evolving market conditions.
BI Bureau
