The Indian government has enacted a ban on sugar exports until September 30, aiming to free up 4-5 lakh tonnes of sugar for domestic consumption, which accounts for about 1.7% of the country's annual requirements. This decision comes amid rising concerns related to El Nino, which could adversely affect sugar production in the 2026-27 season. Industry experts note that while this move will enhance the buffer stock, it may also lead to short-term liquidity challenges for sugar mills, particularly in Maharashtra and Karnataka, which are currently facing high cane payment schedules. The ban was anticipated as the government had not approved sugar mill quotas for exports. Additionally, the recent surge in overseas demand for Indian sugar, particularly from Asian and Middle Eastern buyers, has complicated the situation, with exports amounting to about 3 lakh tonnes in the last 45 days. Experts warn that redirecting export-bound sugar to the domestic market could temporarily pressure prices until the supply chain adjusts.