India Imposes Ban on Sugar Exports Until September to Control Prices
India bans sugar exports till September to stabilise domestic prices
The Economic TimesImage: The Economic Times
India has imposed a ban on sugar exports until September 30 to stabilize domestic prices amid tightening supply. The ban affects all forms of sugar and is a response to rising domestic prices and lower production forecasts due to adverse weather conditions.
- 01India's sugar export ban is effective until September 30, 2026.
- 02The ban aims to stabilize domestic sugar prices, which have risen approximately 4% year-on-year.
- 03India exported $1.9 billion worth of sugar in FY25, primarily to Sudan, Libya, Bangladesh, and Sri Lanka.
- 04Domestic sugar production is projected to be around 28 million metric tonnes for the 2025-26 season.
- 05Adverse weather conditions, including El Nino, are expected to impact sugar production in key states.
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India has officially banned sugar exports until September 30, 2026, to stabilize domestic prices amid tightening supplies. The government has moved sugar from a restricted to a prohibited export category, affecting raw, white, and refined sugar. Previously, exports required a license, but the ban allows certain exceptions, including consignments already in transit and exports under specific quotas. As of Thursday, the average retail price of sugar rose to ₹46.68 per kg, up from ₹45.82 a year ago. This ban comes as domestic sugar production is forecasted to be around 28 million metric tonnes for the 2025-26 season, lower than earlier expectations due to adverse weather and reduced yields in major sugar-producing states like Maharashtra and Uttar Pradesh. The government aims to build a buffer stock amid ongoing supply challenges, with closing sugar stock levels expected to be around 4.3 million metric tonnes by September 2026, indicating lower inventory compared to previous years.
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The ban on sugar exports is likely to stabilize prices for consumers, potentially preventing further increases in retail costs.
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