New Delhi, May 14: The Indian government has suspended sugar exports until September 30, 2026, in a move aimed at ensuring adequate domestic availability and keeping retail prices under control amid concerns over lower production.
The restriction covers raw, white and refined sugar exports with immediate effect. However, shipments that are already in the export pipeline under approved conditions will continue. Export commitments made under quota arrangements with the United States and the European Union have also been exempted from the ban.
The decision represents a significant shift in policy, as the government had earlier permitted sugar mills to export up to 1.59 million metric tonnes during the current season, expecting production to remain higher than domestic demand.
Industry estimates now suggest that India, the world’s second-largest sugar producer after Brazil, may face a second consecutive year in which sugar consumption exceeds production. Concerns over weather patterns, crop output and rising domestic demand have added to supply-side worries.
Officials believe the temporary export curb will help stabilise prices in the local market and prevent shortages during the upcoming festive and high-consumption periods.
The move also comes at a time when global food and commodity markets remain volatile due to geopolitical uncertainties and fluctuating energy prices. Analysts say limiting exports could help India maintain sufficient buffer stock levels while reducing pressure on domestic consumers.
The government is expected to review the situation closer to the end of the restriction period, depending on production trends and inventory levels.