DGFT Bans Sugar Exports Till September 2026; Policy Shifted from ‘Restricted’ to ‘Prohibited’:

DGFT Bans Sugar Exports Till September 2026; Policy Shifted from ‘Restricted’ to ‘Prohibited’ The Directorate General of Foreign Trade (DGFT) under the Ministry of Commerce and Industry (Department of Commerce) has notified that the central government has introduced some significant amendments in the export policy of sugar under Chapter 17 of ITC (HS), Schedule II. This action has been taken in exercise of powers granted under Section 3 read with Section 5 of the Foreign Trade (Development and Regulation) Act, 1992 (No. 22 of 1992), as amended, read with Paras 1.02 and 2.01 of the Foreign Trade Policy, 2023.

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The DGFT has disclosed this update through an Official Notification No. 16/2026-27, dated May 13, 2026. According to the said notification, previously, sugar exports were classified as "Restricted" under the existing policy; however, now under the revised policy, they have been changed to “Prohibited” under ITC (HS) Codes 1701 14 90 and 1701 99 90. These changes are applicable to different types of sugar, including raw sugar, white sugar and refined sugar. The export of sugar has been prohibited with immediate effect (from the publishing date of the notification, i.e., May 13, 2026) until September 30, 2026, or till further orders are issued in this context.

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However, it has been clearly clarified that this ban does not apply to sugar exports made to the European Union (EU) and the United States under the CXL and Tariff Rate Quota (TRQ) arrangements. Exports under the Advance Authorisation Scheme (AAS) will also continue according to existing Foreign Trade Policy rules. Moreover, if the prohibition is not extended beyond September 30, 2026, the export policy for sugar will automatically return to the earlier category, i.e., "restricted". Refer to the official notification for complete information.