India has announced a prohibition on all sugar exports, including raw, white, and refined sugar, effective immediately until September 30, 2026, or further notice. This policy shift was communicated by the commerce ministry on May 13, 2026, changing the status from ‘restricted’ to ‘prohibited’.
India, the second-largest sugar exporter after Brazil, will continue to allow exports to the European Union and the United States under CXL and TRQ quotas. Exceptions also apply to sugar consignments already loaded onto ships, those with shipping bills filed and vessels berthed at Indian ports, and consignments registered in customs’ electronic systems before the prohibition notice.
The move is anticipated to boost global sugar prices, benefiting competitors like Thailand and Brazil. Following the announcement, New York’s raw sugar futures increased by over 2%, while London white sugar futures rose by 3%.
This decision comes amid concerns of declining sugar production in India, exacerbated by expected harsh weather conditions due to El Nino affecting the monsoon. Previously, India had allowed the export of 1.59 million metric tons of sugar, anticipating higher production than domestic needs.
The prohibition highlights India’s strategic response to global market conditions and internal production challenges. Analysts predict further policy adjustments may occur if production forecasts change, impacting international sugar trade dynamics.
Published in SouthAsianDesk, May 14, 2026
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