Notification on Revision in Export Policy for Sugar

Notification on Revision in Export Policy for Sugar

The Government of India, through the Ministry of Commerce & Industry and the Directorate General of Foreign Trade (DGFT), has issued Notification No. 16/2026-27 dated 13 May 2026 regarding amendments to the export policy of sugar under Chapter 17 of the ITC (HS) Schedule-II.

Exercising powers under the Foreign Trade (Development & Regulation) Act, 1992 and the provisions of the Foreign Trade Policy, 2023, the Central Government has revised the export status of specified sugar categories.

Change in Export Policy

The export policy for the following sugar categories has been changed from “Restricted” to “Prohibited” with immediate effect:

The prohibition on exports will remain in force until 30 September 2026 or until further orders, whichever is earlier.

Exceptions to the Prohibition

The restriction will not apply in the following cases:

1. Exports to EU and USA under Quota Arrangements

Sugar exports to the European Union and the United States under CXL and TRQ quota mechanisms will continue to be permitted in accordance with the procedures prescribed in the relevant Public Notices.

2. Advance Authorization Scheme (AAS)

Exports carried out under the Advance Authorization Scheme shall continue to be governed by the existing provisions of the Foreign Trade Policy, 2023 and the Handbook of Procedures, 2023.

3. Government-to-Government Exports

Exports may also be permitted where approval is granted by the Government of India to fulfill food security requirements of other countries based on official requests received from their governments.

Transitional Relief for Existing Consignments

Although the prohibition takes immediate effect, exports will still be allowed for consignments that satisfy any one of the following conditions:

• Loading of sugar onto the vessel had already commenced before publication of the notification in the Official Gazette.
• The Shipping Bill had been filed and the vessel had berthed, arrived, or anchored at an Indian port with a rotation number allotted by the Port Authority before publication of the notification. Loading approval in such cases will be subject to confirmation from the concerned Port Authority.
• The sugar consignment had already been handed over to Customs or the Custodian before publication of the notification and the same had been recorded in the electronic system with verifiable date and time details.

Applicability of Transitional Arrangement under FTP

The Government has clarified that the transitional arrangement provisions contained in Para 1.05 of the Foreign Trade Policy, 2023 will not apply to this notification.

Future Position After 30 September 2026

If the export prohibition is not extended beyond 30 September 2026, the export policy for sugar under ITC (HS) Codes 1701 14 90 and 1701 99 90 will automatically revert from “Prohibited” back to “Restricted”.

Overall Effect of the Notification

With this amendment, export of raw, white, and refined sugar has been prohibited temporarily to regulate outbound shipments. However, exports under quota commitments, Advance Authorization Scheme, government-approved humanitarian or food security arrangements, and consignments already in the export pipeline remain permitted.

The notification has been issued with the approval of the Minister of Commerce & Industry and signed by Lav Agarwal, Director General of Foreign Trade and Ex-Officio Additional Secretary to the Government of India.

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