The Indian sugar sector reacted with shock to the government's decision to impose an export ban until September 30, aimed at controlling rising domestic prices. This decision comes just weeks after allowing an additional 0.5 million tonnes of sugar exports on top of the previously permitted 1.5 million tonnes. Industry leaders argue that this abrupt move could hurt farmers and disrupt commitments with foreign buyers. Sugar prices have increased significantly, rising from around ₹35-36 per kg to ₹38-40 per kg, driven by expectations of low closing stocks and reduced production. The Indian Sugar & Bio-energy Manufacturers Association (ISMA) has called for the government to allow the execution of existing export contracts to maintain credibility in the global market. The export ban is projected to save only about 0.2 million tonnes of sugar, while the overall sugar production for the 2025-26 season is expected to be around 27.95 million tonnes, down from earlier estimates. Following the announcement, shares of sugar companies dropped by up to 7%, reflecting investor concerns over the sector's future.