Centre Bans Sugar Exports to Boost Domestic Availability and Control Prices

The Central Government has issued orders banning sugar exports in a move aimed at increasing domestic availability and controlling prices in the local market. The revised sugar export policy has come into immediate effect and applies to raw sugar, white sugar, and refined sugar.

According to the notification, the ban will remain in force until September 30 this year or until further orders are issued. The Directorate General of Foreign Trade (DGFT) stated that sugar exports have been shifted from the “Restricted” category to the “Prohibited” category for this period. It also clarified that if the restriction is not extended beyond September 30, the export policy will automatically revert to the earlier “Restricted” status.

However, the ban will not apply to sugar exports to the European Union and the United States under the CXL and Tariff Rate Quota (TRQ) arrangements. Exemptions have also been provided for exports under the Advance Authorization Scheme, government-to-government export agreements, and consignments where loading operations had already begun before the order came into effect.Earlier, the Food Ministry had approved exports of 1.5 million tonnes of sugar for the 2025–26 marketing year (October to September). Subsequently, an additional quota of 500,000 tonnes was made available, of which only 87,587 tonnes received approval. As a result, permission had been granted for the export of nearly 1.6 million tonnes of sugar.

Following the announcement of the export ban, shares of sugar companies witnessed a sharp decline on Thursday. On the NSE, shares of Balrampur Chini Mills fell by 5.6 percent, touching a low of ₹517.75 per share.