Indian government extends limits on sugar exports to secure domestic supply

Indian government extends limits on sugar exports to secure domestic supply

Fulfilling domestic demand and maintaining price stability

Sugar Export Restrictions In India

India, which held the position of the world's second-largest sugar exporter, instituted a restriction on sugar exports, extending it until October 31, 2023. This measure was implemented with the aim of preventing the unregulated export of sugar and ensuring an ample supply of sugar for domestic consumption at affordable prices. The government's decision to categorize sugar exports as restricted was driven by the desire to strike a balance between fulfilling domestic demand and maintaining price stability. 

India permitted sugar mills to export 6.1 million tonnes of sugar in the current season, ending on September 30. This is a significant reduction from the previous season when they were allowed to sell a record 11.1 million tonnes. This decision is due to a deficit in monsoon rains in the top sugar-growing regions of Maharashtra and Karnataka, which together contribute more than half of India's total sugar production. The data from the weather department revealed that this year's monsoon rains have been up to 50% below the average in these crucial sugarcane-growing areas.

The Directorate General of Foreign Trade (DGFT) announced on Wednesday that the extension of export restrictions on all sugar varieties will continue beyond the initial deadline. "This restriction is not applicable to sugar being exported to EU and USA under CXL and TRQ quota as per prescribed procedure in the respective public notices," said the notification.  

India's most recent instance of imposing a 20 percent tax on sugar exports to restrict foreign sales dates back to 2016.


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