Daijiworld Media Network – New Delhi

New Delhi, May 14: The Central Government has banned sugar exports with immediate effect until September 30, 2026, or until further orders, in a move aimed at controlling domestic prices and ensuring adequate availability in the local market.

The decision is expected to support global sugar prices while creating opportunities for rival exporters such as Brazil and Thailand to increase shipments to buyers in Asia and Africa.

India, the world’s second-largest sugar producer and one of the biggest exporters after Brazil, had earlier permitted mills to export 1.59 million metric tons of sugar, anticipating surplus production over domestic demand. However, production is now projected to remain below consumption levels for the second consecutive year due to declining sugarcane yields in key producing regions.

The Directorate General of Foreign Trade (DGFT) under the Ministry of Commerce and Industry issued the notification stating that exports of raw, white and refined sugar have been moved from the “restricted” category to “prohibited.”

The move marks a significant policy reversal after the government had earlier allowed limited exports based on expectations of higher production.

Concerns over possible El Nino-related disruptions to the monsoon season have further increased fears that sugar output may decline further next season.

According to reports, traders had signed contracts for around 800,000 tons out of the approved 1.59 million metric tons for export, with more than 600,000 tons already shipped.

The government clarified that consignments already in the export pipeline would still be permitted under certain conditions. Exports will be allowed if loading had commenced before publication of the notification, or if shipping bills had already been filed and vessels had berthed, arrived or anchored at Indian ports.

Shipments where sugar had already been handed over to customs authorities or custodians before the notification was issued will also be cleared.

Following the announcement, global sugar prices surged, with New York raw sugar futures rising over 2 per cent and London white sugar futures jumping nearly 3 per cent.