India has banned sugar exports with immediate effect until September 30, 2026, according to a notification issued by the Directorate General of Foreign Trade (DGFT) on May 13, 2026. The export policy for raw sugar, white sugar, and refined sugar has been amended from “Restricted” to “Prohibited” to cool domestic prices and ensure adequate local supply .
The prohibition applies to sugar under ITC (HS) codes 1701 14 90 and 1701 99 90. India, as one of the world’s largest sugar producers and exporters, has previously used export controls to manage domestic supplies and contain food inflation.
Exemptions Granted
The government has carved out several exemptions from the export ban . Sugar exports to the European Union and United States under CXL and Tariff Rate Quota (TRQ) arrangements remain permitted, along with shipments under the Advance Authorisation Scheme . Exports may also be allowed based on permissions granted to meet other countries’ food security requirements upon foreign government requests.
Consignments already in the export pipeline are exempt, including shipments where loading had commenced before the notification, shipping bills were filed with vessels already berthed or anchored at Indian ports, and consignments handed over to customs with verifiable electronic records.
Policy Reversion Clause
If the prohibition is not extended beyond September 30, 2026, the export policy for sugar will automatically revert to “Restricted” status . The notification was issued with approval from the Minister of Commerce and Industry and signed by DGFT Director General Lav Agarwal. The latest order is expected to tighten global market availability while prioritizing domestic consumption.
