India Bans Sugar Export Till September 30 to Protect Supplies
The government has instituted an immediate suspension on sugar exports until September 30, a move that could assist in stabilizing domestic prices amid a resurgence in global rates that increases the appeal of Indian sugar.
For the October-September 2025-26 period, the government has sanctioned the export of 1.59 million tonnes (mt) of sugar, with reports indicating that 0.53 mt had already been exported by the end of March.
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However, according to industry insiders, the actual volume of sugar exported so far during the current season might have reached approximately 0.75 million tons, with total contractual agreements (encompassing quantities already dispatched) potentially amounting to 1 million tons.
Consequently, the government might conserve around 0.2 million tons of sugar from being exported, thereby ensuring its availability within the domestic market. The directive released by the Directorate General of Foreign Trade on May 13, which prohibits the export of sugar, specifies that this ban will expire on September 30 unless an extension is granted.
The prohibition does not apply to sweeteners exported to the EU and USA under CXL and TRQ quotas. Additionally, sugar exports under the Advance Authorization Scheme (AAS) will also proceed as usual. According to the AAS framework, refineries are permitted to import raw sugar without paying duty, provided it is subsequently re-exported as white sugar, thereby promoting domestic processing.
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While the prohibition will be enforced immediately, transitional provisions will apply, allowing export if the loading of sugar onto the vessel began prior to the publication date of the notification in the Official Gazette (May 13). Additionally, consignments will be authorized for export if the Shipping Bill has been submitted and the vessel has berthed or anchored at an Indian port, with its rotation number assigned by the Port Authority, before the notification's specified date.
However, authorization for loading onto such vessels will be granted solely after the relevant Port Authority has confirmed berthing or anchoring arrangements predating this notification.
In cases where the sugar consignment was transferred to Customs or the Custodian prior to the notification and is duly recorded in their electronic system, with verifiable documentation indicating the precise date and time of transfer, such consignments will also receive approval. The government has also elucidated that under a permit system, shipments may be authorized based on diplomatic requests from certain foreign nations.
India encountered a shortage of sugar during the 2022-23 season, which led to restrictions on exports. Despite experiencing a record harvest in the 2023-24 season, no exports were authorized. In the 2024-25 season, the country exported 0.9 million tons out of the 1 million tons that were authorized for export. As per the BMI report, the global sugar prices, which averaged 14.6 US cents per pound (equivalent to 0.454 kg) in the first quarter of the calendar year 2026 (January to March), are expected to undergo a gradual recovery. The quarterly averages are forecasted to rise, reaching 16.2 US cents per pound in the second quarter (April to June), 16.6 US cents per pound in the third quarter (July to September), and 17.2 US cents per pound in the fourth quarter (October to December).
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The projected annual average for the calendar year 2026 stands at 16.2 US cents per pound. In July New York sugar futures (SBN26) saw an increase of 2.47 percent, while August London ICE white sugar futures (SWQ26) rose by 3.10 percent. The recent surge in sugar prices has been triggered by analysts highlighting a contraction in global supply, attributed to lower than anticipated production in Brazil and India.
India's net sugar output is projected to reach approximately 28 million tons in the 2025-26 season, excluding quantities allocated for ethanol production. This volume aligns with the nation's annual domestic consumption levels. Although this figure surpasses the 26.1 million tons recorded in the previous season, the industry had anticipated production to exceed 30 million tons.