India Imposes Ban on Sugar Exports Until September 2026

New Delhi. India has imposed a ban on sugar exports to control the price of sugar in the domestic market. This ban will be effective immediately until September 30, 2026, or until another order is issued. India is the world's second-largest sugar producer after Brazil. 

India had previously allowed sugar mills to export 15.9 million tonnes of sugar. The government made this decision in anticipation of production exceeding domestic demand. However, due to weak production in major sugarcane producing regions, it is now estimated that sugar production may be less than domestic consumption for the second consecutive year.

Exports of raw, white, and refined sugar have been immediately banned. Those under EU and US quota and advance authorization schemes have been exempted from this ban. Following India's announcement of export restrictions, futures for raw sugar rose by more than 2% in New York. White sugar futures in London rose by 3%.

Shipments whose loading had started before the publication of the notification in the official gazette will be allowed for export. According to traders, out of the 15.9 million tonnes of sugar approved for export, contracts for about 800,000 tonnes were signed, of which more than 600,000 tonnes have already been sent. However, shipments in the process of export will be allowed under the specified conditions.

In addition, exports for which the shipping bill has already been filed and the ship has docked at an Indian port, arrived, or is anchored will also be approved. If the sugar was handed over to the customs department or authorized custodian before the issuance of the notification, such shipments will also be approved.