DGFT Prohibits Sugar Exports Until September 30, 2026

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Dated: 14.05.2026

DGFT Prohibits Sugar Exports Until September 30, 2026

India’s Ministry of Commerce & Industry has announced a significant change in the country’s export policy for sugar, effective immediately. This move aims to regulate the supply of sugar in the domestic market and ensure food security. Here’s a detailed overview of the new policy, its exceptions, and implications for exporters and international buyers.

Key Highlights of the Sugar Export Prohibition

Immediate Ban on Sugar Exports
- The export of all types of sugar—including raw, white, and refined sugar—is now prohibited from India.
- This ban is effective until September 30, 2026, or until further orders, whichever comes first.
Affected Products and Codes
- The prohibition covers sugar under ITC (HS) codes 1701 14 90 and 17019990.
- Previously, these products were under a “Restricted” export policy; now, they are “Prohibited.”
Exceptions to the Ban
- Exports to the EU and USA:
  - Sugar exports to the European Union and United States are allowed under CXL and TRQ quotas.
  - Exporters must follow the prescribed procedures outlined in relevant Public Notices.
- Advance Authorization Scheme (AAS):
  - Exports under the AAS will continue as per the existing Foreign Trade Policy, 2023, and the Handbook of Procedures, 2023.
Transitional Arrangements
- The notification clarifies that transitional arrangements under Para 1.05 of the Foreign Trade Policy, 2023, do not apply to this prohibition.
- The policy change is effective immediately, with no grace period for ongoing contracts or shipments.

Implications for Exporters and Buyers

Exporters:
- Must halt all sugar exports except those covered by the EU/USA quotas or the Advance Authorization Scheme.
- Should review their contracts and supply chains to ensure compliance with the new regulations.
International Buyers:
- Buyers outside the EU and USA will not be able to source sugar from India until the ban is lifted.
- Those within the EU and USA must ensure their imports fall within the quota limits and follow the prescribed procedures.

Policy Rationale

While the notification does not explicitly state the reasons, such prohibitions are typically enacted to:

Stabilize domestic prices and supply.
Ensure food security during periods of anticipated shortage or increased demand.
Support government objectives related to agricultural and trade policy.

How to Export Sugar Under Exceptions

EU and USA Quotas:
- Exporters must apply under the CXL and TRQ quota systems.
- Follow the procedures detailed in the relevant Public Notices from the Directorate General of Foreign Trade.
Advance Authorization Scheme:
- Exports must comply with the Foreign Trade Policy, 2023, and the Handbook of Procedures, 2023.
- Only sugar processed under advance authorization is eligible for export.

Conclusion

India’s prohibition on sugar exports is a major policy shift with immediate effect. Exporters and buyers must adapt quickly to the new rules, focusing on the exceptions for EU and USA quotas and the Advance Authorization Scheme. Staying informed and compliant is essential to avoid disruptions and penalties.

In case you face any issues related to Indirect Tax-Customs, GST, Foreign Trade Policy (FTP), Arbitration matters and Central Licensing and related advisory matters in India then please feel free to get in touch with SJ EXIM Services.

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Source: DGFT

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