India on Wednesday banned sugar exports with immediate effect until September 30, 2026, or until further orders, to control domestic prices and ensure adequate local availability.
The decision is expected to support global white and raw sugar prices, while creating opportunities for major exporters such as Brazil and Thailand to increase shipments to buyers across 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 production would exceed domestic demand. However, output is now projected to fall short of consumption for a second straight year due to weaker sugarcane yields in key producing regions.
Concerns over possible El Niño weather conditions affecting the upcoming monsoon season have further heightened fears that next season’s sugar production could decline below earlier estimates.
According to trade sources, contracts had already been signed for nearly 800,000 metric tons out of the approved export quota, with more than 600,000 metric tons already shipped.
The government clarified that exports of both raw and white sugar would be prohibited, though shipments already in the export pipeline would be allowed under specific conditions.
Exports will still be permitted if:
- Loading had commenced before the notification was published in the Official Gazette.
- A shipping bill had already been filed and the vessel had berthed, arrived, or anchored at an Indian port.
- Sugar consignments had been handed over to customs or custodians before the notification.
“The government had provided additional export quotas in February, which encouraged traders to sign export deals. It will now be a headache for traders to fulfill those export orders,” a Mumbai-based dealer with a global trade house said.
Following the announcement, New York raw sugar futures rose more than 2%, while London white sugar futures surged nearly 3% on expectations of tighter global supplies.
