India bans sugar exports until September 2026 

INDIA – India has imposed an immediate ban on sugar exports until September 30, 2026, in a move aimed at improving domestic availability and controlling prices amid concerns over tightening supplies. 

The decision was announced by the Directorate General of Foreign Trade (DGFT), which revised the export policy for raw sugar, white sugar and refined sugar from “restricted” to “prohibited” in a notification issued on May 13. 

India, the world’s second-largest sugar producer after Brazil, had earlier permitted sugar mills to export up to 15.9 million tonnes of sugar during the 2025-26 marketing year based on expectations of surplus production. 

The government and sugar mills had initially projected exports of between 750,000 and 800,000 tonnes during the season. However, weaker production prospects in key sugarcane-growing regions have raised concerns that domestic sugar output may fall below consumption levels for a second consecutive year. 

According to the Indian Sugar and Bio-energy Manufacturers Association (ISMA), sugar production increased by 7.32% to 27.52 million tonnes by April during the 2025-26 marketing season, supported by stronger output in Maharashtra and Karnataka. 

ISMA projected total sugar production for the season at 29.3 million tonnes after diversion for ethanol production, compared with 26.12 million tonnes recorded in 2024-25. 

Despite the production increase, authorities moved to halt exports to secure local supply and manage price stability in the domestic market. 

The export restrictions apply immediately to raw, white and refined sugar shipments. However, the government clarified that exports to the European Union and the United States under existing tariff rate quota arrangements will remain exempt from the ban. 

The notification also allows certain shipments already in progress to proceed under specified conditions. 

According to traders, contracts had already been signed for approximately 800,000 tonnes out of the approved 15.9 million tonnes export quota, with more than 600,000 tonnes already shipped before the restriction took effect. 

The government stated that exports will still be permitted for consignments where loading had commenced before publication of the notification in the official gazette. 

Shipments for which shipping bills had already been filed, vessels had docked or cargo had been handed over to customs authorities before the notification was issued will also be cleared for export. 

Following India’s announcement, global sugar markets reacted sharply, with raw sugar futures in New York rising more than 2%, while white sugar futures in London climbed 3%. 

Sign up HERE to receive our email newsletters with the latest news and insights from Africa and around the world, and follow us on our WhatsApp channel for updates.