Sugar Exports Prohibited to Divert Stocks for Ethanol Petrol Blending for 140 Days Till 30 Sept. 2026

Ř  Prior Commitments to be Honoured

Ř  The prohibition is not applicable to Sugar being exported under: (i) EU and USA under CXL and TRQ quota, (ii) Advance Authorization Scheme (AAS), (iii) Government-to-Government exports, and, (iv) consignments already in physical export pipeline

·         The Government of India has amended the export policy for sugar under ITC (HS) Codes:

o    1701 14 90

o    1701 99 90

·         Export policy for:

o    Raw Sugar,

o    White Sugar,

o    Refined Sugar
has been changed from “Restricted” to “Prohibited”.

·         The prohibition takes immediate effect and will remain in force until:

o    September 30, 2026, or

o    Further orders, whichever is earlier.

·         The notification has been issued under:

o    Foreign Trade (Development and Regulation) Act, 1992

o    Foreign Trade Policy 2023

Exemptions from the Prohibition

The export ban will not apply to:

·         Sugar exports to the:

o    European Union under CXL quota,

o    USA under TRQ quota.

·         Exports under the:

o    Advance Authorization Scheme (AAS).

·         Government-to-Government (G2G) exports approved by the Government of India.

·         Certain consignments already in the export pipeline before publication of the notification.

Transitional Shipment Relief Allowed For

Exports will still be permitted if any one of the following conditions is met before notification publication:

·         Loading of sugar on the vessel had already commenced.

·         Shipping Bill had been filed and:

o    Vessel had berthed,

o    Arrived,

o    Or anchored at an Indian port with rotation number allotted.

·         Sugar consignments had already been handed over to Customs or Custodian and recorded in the electronic system with verifiable timing evidence.

Food Security Exception

·         Sugar exports may still be allowed based on:

o    Requests from foreign governments,

o    Government of India approval to meet food security requirements of other countries.

Future Policy Position

·         If the prohibition is not extended beyond September 30, 2026, the export policy for sugar will automatically revert from “Prohibited” back to “Restricted”.

·         The notification states that transitional arrangements under Para 1.05 of the Foreign Trade Policy, 2023 will not apply in this case.

[DGFT Notification No. 16/2026-27 dated 13 May, 2026]

Effect of this notification: The export policy of Sugar (Raw Sugar, White Sugar and Refined Sugar) under ITC (HS) Codes 1701 14 90 and 1701 99 90 is amended from 'Restricted' to 'Prohibited' with immediate effect till September 30, 2026, or until further orders, whichever is earlier. This prohibition is not applicable to Sugar being exported under: (i) EU and USA under CXL and TRQ quota, (ii) Advance Authorization Scheme (AAS), (iii) Government-to-Government exports, and, (iv) consignments already in physical export pipeline.

Subject: Amendment in Export Policy of Sugar.

S.O. (E): The Central Government, in exercise of powers conferred by Section 3 read with Section 5 of the Foreign Trade (Development & Regulation) Act, 1992 (No. 22 of 1992), as amended, read with Para 1.02 and 2.01 of the Foreign Trade Policy, 2023, hereby amends the export policy of Sugar under Chapter 17 of ITC (HS), Schedule - II as under:

ITC (HS) Code

Description

Existing Policy

Revised Policy

Policy Condition

1701 14 90, 1701 99 90

Sugar (Raw Sugar, White Sugar and Refined Sugar)

Restricted

Prohibited

Export of Sugar is prohibited with immediate effect till September 30, 2026, or till further orders, whichever is earlier

2. This prohibition shall not apply to Sugar being exported to the EU and USA-under CXL and TRQ quota, as per the prescribed procedure in the respective Public Notices.

3. Export of Sugar under the Advance Authorization Scheme (AAS) shall continue to be governed as per existing provisions of the Foreign Trade Policy, 2023 and the Handbook of Procedures, 2023.

4. This Notification shall come into effect immediately. The provisions of Para 1.05 of the Foreign Trade Policy, 2023 regarding transitional arrangement shall not be applicable under this Notification. Notwithstanding the above prohibition, export of Sugar shall be permitted in respect of consignments fulfilling any one of the following conditions:-

(i). where loading of sugar on the ship has commenced before the date of publication of this Notification in the Official Gazette;

(ii). where the Shipping Bill has been filed and the vessel has berthed or arrived and anchored in an Indian port, with its rotation number allocated by the Port Authority, before the date of publication of this Notification in the Officia.1 Gazette. The approval for loading in such vessels shall be issued only after confirmation by the concerned Port Authority regarding berthing/anchoring prior to this Notification; or,

(iii). where the sugar consignment has been handed over to Customs/Custodian before the date of publication of this Notification in the Official Gazette and is registered in their electronic system, with verifiable evidence of the date and time of such handing over.

5. The export of the above products/ items, however, shall be allowed on the basis of permission granted by the Government of India to other countries to meet their food security needs and based on the request of their governments.

6. In case the date of prohibition on sugar exports under this Notification is not extended beyond September 30, 2026, the export policy for sugar falling under ITC (HS) Code 1701 14 90 and 1701 99 90 shall revert back to "Restricted".

This is issued with the approval of the Minister of Commerce & Industry, Government of India.

(Issued from File No. 01/91/180/879/AM08/ECN ol.8/E-20749)/e-20749)