Indian sugar exports are shut. What buyers should plan for in 2026–27

India is one of the world's largest sugar producers, but its exports are tightly controlled. Buyers planning for 2026–27 should assume Indian sugar will be limited or unavailable until the government says otherwise.

What happened in 2025–26

• The government allowed 1.5 million tonnes of exports for the 2025–26 season, split between sugar mills in proportion to their recent output.
• In March 2026 it allocated a further 87,587 tonnes to mills that wanted to export.
• On 13 May 2026, DGFT moved sugar from "restricted" to "prohibited" until 30 September 2026 or further orders. Exports under EU and US tariff quotas, advance authorisation and shipments already in the pipeline were exempted.
• About 820,000 tonnes had been exported before the ban.

The outlook for 2026–27

The government has said its priorities are domestic consumption first, then ethanol blending, and only then exports. It has not announced an export quota for the new season, which began on 1 October. The USDA's October 2026 report on India expects lower production because of erratic rainfall, waterlogging and pests, and describes exports as still suspended.

What this means for buyers

• Do not plan programmes around Indian sugar until a 2026–27 export policy is published.
• If an export window opens, it is likely to be a fixed quota allocated to mills, so contracts will need to be placed quickly and backed by firm payment terms.
• The EU has also kept its sugar tariffs in the new EU–India trade agreement.

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Sources

• Department of Food and Public Distribution, Allocation of export quota, 2025–26
• A2Z Taxcorp, Government prohibits sugar exports till 30 September 2026
• ChiniMandi, 2026–27 export call depends on realistic crop estimate
• USDA FAS, India Sugar Semi-annual (October 2026)

This article is general information, not legal, tax or customs advice. Trade rules change often, so confirm the position for your product with your customs broker before you ship.