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India puts sugar in 'prohibited' category for export
Friday, 15 May, 2026, 08 : 00 AM [IST]
Ashwani Maindola, New Delhi
In a strategic move to stabilise the domestic market, the Indian government has officially extended the ban on sugar exports. The directive, issued by the Directorate General of Foreign Trade (DGFT), reclassifies the export of raw, white, and refined sugar as "Prohibited" through late 2026.

“Export of Sugar is prohibited with immediate effect till September 30,2026, or till further orders, whichever is earlier,” reads the notification issued by the DGFT.

The decision comes as the government prioritises local food security and price control over international trade revenue and by restricting outflows, the Govt aims to ensure that domestic retail prices remain affordable for the general population.

Specific quotas for the European Union and United States under existing trade agreements will be honoured while the government has reserved the right to permit exports to neighbouring or vulnerable nations on a case-by-case basis to support global food security.

As the world’s second-largest sugar producer, India’s withdrawal from the export market is expected to tighten global supplies, likely driving up sugar futures on international exchanges. Locally, however, the move provides a much-needed buffer against food inflation.

As per reports, the estimates suggest India may produce around 32 million tonnes of sugar in the current season, slightly less than earlier projection of 32.4 million tonnes.
 
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