India on Wednesday banned sugar exports with immediate effect until September 30, 2026, or until further orders, the government said in a notification, as the world's second-largest sugar producer tries to rein in local prices.
The move is likely to support global white and raw sugar prices, while allowing rival producers Brazil and Thailand to boost shipments to Asian and African buyers.
India, the world's biggest sugar exporter after Brazil, allowed mills to export 1.59 million metric tons, betting output would exceed domestic demand. But production is now expected to lag consumption for a second consecutive year as cane yields weaken in major growing regions.
Forecasts that El Nino weather conditions could disrupt this year's monsoon have also raised the risk that next season's output falls below initial estimates.
Of the 1.59 million metric tons approved for export, traders signed contracts for about 800,000 tons, of which more than 600,000 tons have already been shipped, dealers said.
The government said it would prohibit exports of raw and white sugar, while allowing shipments already in the export pipeline to proceed under specified conditions.
It said consignments would be permitted if loading had already begun before publication of the notification in the Official Gazette.
Exports will also be allowed where a shipping bill had been filed and the vessel had already berthed, arrived or anchored at an Indian port.
Shipments will further be cleared if sugar had been handed over to customs or a custodian prior to publication of the notification, the government said.
"The government had provided additional export quotas in February, which encouraged traders to sign export deals. It will now be a headache for traders to fulfill those export orders," said a Mumbai-based dealer with a global trade house.
New York raw sugar futures extended gains to over 2%, while London white sugar futures jumped 3% after India announced the ban on exports.
Published on May 14, 2026