(Image source from: Canva.com)
The government has prohibited the export of sugar until the end of September in order to keep local prices steady during a time when there are concerns about reduced sugar stocks and a potential decline in sugar production for the 2026-27 season, which runs from October to September. The Directorate General of Foreign Trade updated the export rules for raw sugar late on Wednesday, changing the category of white sugar and refined sugar from ‘restricted’ to ‘forbidden’ until September 30, 2026, or until further notice, whichever comes first. The Indian Sugar and Bio-energy Manufacturers Association (ISMA) referred to the government’s decision to limit sweetener exports as a reaction to changing domestic supply situations and climate uncertainties for the upcoming season (2026-27). According to ICRA, the total sugar production, after accounting for ethanol usage, is expected to be about 28 million tonnes, which is less than what was initially predicted. The organization mentioned that with domestic consumption at 28.3 million tonnes and exports of 0.7 million tonnes, the ending sugar stock is forecasted to be around 4.3 million tonnes by September 2026. This amounts to nearly two months of usage, suggesting inventory levels are a bit lower compared to previous years.
“The government’s decision will help prevent significant rises in local prices while ensuring that sugar remains available domestically, considering the expected decrease in sugar stock and next year’s production,” said Rachit Mehta, vice president of ICRA. The government allowed sugar exports in November 2025 based on the production forecasts available at that time. Industry insiders noted that as the season went on, sugar output in Maharashtra and Uttar Pradesh was negatively affected by weather challenges. According to ISMA, approximately 0.65 million tonnes of sugar has been exported so far, while an estimated 40,000 to 60,000 tonnes are being sent out under previously signed contracts.
For the 2025-26 sugar marketing season (from October to September), the food ministry allowed 1.5 million tonnes of exports in November 2025, and in February 2026, it approved an extra shipment of 500,000 tonnes of sweetener.
"Although the sector was looking forward to a measured assessment of the export situation, the quick implementation of the current restrictions could lead to real difficulties in meeting some export agreements already made with international partners," stated Deepak Ballani, the general director of ISMA. The organization recommended that allowing the fulfillment of existing contracts might assist in ensuring smooth trade settlements and enhance the reliability of Indian suppliers in the worldwide market. As of the end of April 2026, ISMA reported total sugar output of 27.52 MT, which is 7% greater than the previous season, even though only 5 out of 539 factories were functioning. On Thursday, shares of significant sugar firms – Triveni Engineering, Balram Chini, Shree Renuka Sugar, and Mawana Sugar – fell following the government's announcement regarding the ban on sugar exports.
On Thursday, shares of Balrampur Chini and Triveni Engineering dropped by 1.63% and 1.57%, reaching Rs 545 and Rs 383 respectively on the BSE compared to the previous trading day, while Shree Renuka Sugar saw a decrease of 2.41% to Rs 24. Shares of Mawana Sugar went down by 4.18% to Rs 104 on Thursday.
