India has imposed an immediate ban on sugar exports until September 30, 2026, or until further orders, as the government moves to control rising domestic sugar prices and secure local supplies.

The decision was announced through an official government notification on Wednesday.

Export ban to impact global sugar market

India is the world’s second-largest sugar producer and among the biggest sugar exporters globally after Brazil.

The export restriction is expected to support global sugar prices while creating opportunities for countries such as Brazil and Thailand to expand shipments to Asian and African markets.

Following the announcement, international sugar prices reportedly surged, with New York raw sugar futures rising over 2 per cent and London white sugar futures climbing nearly 3 per cent.

Production concerns behind decision

The government had earlier allowed mills to export around 1.59 million metric tonnes of sugar after expecting production to remain above domestic demand.

However, industry estimates now suggest that sugar production may fall short of consumption for the second consecutive year due to lower sugarcane yields in key growing regions.

Concerns over possible El Niño weather conditions affecting the upcoming monsoon have also raised fears of weaker output in the next season.

Existing export consignments allowed

The government clarified that certain consignments already in the export pipeline would still be permitted under specific conditions.

Exports will continue if loading had already started before the official notification or if shipping bills had been filed and vessels had already berthed or anchored at Indian ports.

Sugar already handed over to customs authorities before the notification will also be cleared for export.

Traders express concern

Industry traders said the sudden restriction could create difficulties for exporters who had already entered into international contracts after additional export quotas were announced earlier this year.

Reports suggest contracts for nearly 800,000 metric tonnes had already been signed, with over 600,000 tonnes shipped before the ban