India bans sugar exports till September 2026 amid falling output, supply concerns

India banned sugar exports with immediate effect till September 30, 2026, or until further orders, as the government moved to control domestic prices and secure local availability amid weakening production estimates.

In a notification released on Wednesday, the government said exports of both raw sugar and white sugar would remain prohibited during the period. The decision comes as India, the world’s second-largest sugar producer, faces the possibility of production falling short of domestic consumption for the second consecutive year.

The government had earlier allowed sugar mills to export 1.59 million metric tons after initial estimates indicated adequate output. However, lower cane yields in key producing regions have since raised concerns over supply.

Fears that El Nino conditions could affect this year’s monsoon have also added to worries over next season’s sugar production.

The move is expected to support global sugar prices, with traders likely to turn to Brazil and Thailand for additional supplies after India’s withdrawal from exports.

Which sugar exports will still be allowed?

While imposing the ban, the government allowed certain shipments already in the export pipeline to proceed under specified conditions.

According to the notification, exports will be permitted if loading of sugar consignments had already started before the order was published in the Official Gazette.

Shipments will also be cleared if the vessel carrying the cargo had already berthed, arrived or anchored at an Indian port before the notification came into effect.

In addition, exports will be allowed where sugar consignments had already been handed over to customs authorities or custodians prior to publication of the order.

Trade sources said contracts had already been signed for around 800,000 metric tons out of the approved export quota, while more than 600,000 tons have already been shipped.

The sudden policy shift is expected to create difficulties for exporters who entered into overseas deals after additional export quotas were announced earlier this year.