New Delhi (Rajeev Sharma): In a major policy decision aimed at protecting domestic sugar reserves, the Central Government has stopped the export of sugar with immediate effect and placed strict restrictions on overseas shipments until September 30, 2026, or until fresh directions are issued.
The Directorate General of Foreign Trade (DGFT) released an official notification revising sugar’s export classification from “Restricted” to “Prohibited,” effectively halting most international trade of the commodity.
The move is being seen as an effort to ensure sufficient availability within the country and shield the local market from possible price fluctuations triggered by global demand pressures.
Despite the broad prohibition, the government has carved out specific exemptions. Sugar exports to the European Union and the United States under the CXL and Tariff Rate Quota (TRQ) mechanisms will continue as scheduled.
The restriction will also not apply to exports processed under the Advance Authorisation Scheme, allowing businesses with pre-approved obligations to complete shipments. Additionally, supplies being sent under inter-government agreements for food security support to other nations have been kept outside the ban.
Officials further clarified that consignments already positioned within the physical export chain before the order’s implementation will be permitted to leave the country.
The decision has triggered concern among exporters and sugar mills, which were expecting steady international demand in the coming months. However, market analysts say the temporary curb could help stabilise domestic prices and maintain buffer stock levels.
The Centre is expected to monitor production trends and domestic stock availability closely before taking any further call on lifting or extending the restrictions.
