The decision comes amid a surge in global prices and concerns over lower domestic production
India has banned exports of sugar for the next five months to keep prices in check amid a global rally in the commodity.
New Delhi said in an announcement late on Wednesday that the measure will remain in force until September 30.
Limited exceptions, including for existing consignments and exports under government deals for food security, will be allowed.
The decision comes amid concerns over lower production. The sugarcane harvest in India, the world’s largest sugar producer, which begins around October, could be affected by a lower-than-average monsoon because of the El Nino weather pattern, AFP reported.
New Delhi needs roughly 26-28 million tons of sugar annually for domestic use. Output was about 31.5 million tonnes in 2023-24 and is estimated to be around 25.8 million tonnes in 2024-25 after a weak season.
India exported a record 11 million tonnes of sugar in 2021-22. The figure fell sharply to 6.3 million tonnes in 2022-23 and slid further the following year. A modest recovery in exports – to 900,000 tons – was recorded in 2024-25.
The dip was policy-driven, with India prioritizing domestic needs by curbing exports and routing some stocks for ethanol blending.
African nations, mainly Sudan, Libya, and Somalia, were India’s top sugar-exporting destinations in 2024-25, according to data from the Directorate General of Commercial Intelligence and Statistics.
The Iran war has impacted the outlook for the sugar sector due to concerns over fertilizer imports. The Middle East accounts for about half of India’s fertilizer imports. Saudi Arabia is India’s largest supplier of diammonium phosphate, and Oman is its biggest urea supplier. Concerns also stem from a shortage of liquefied natural gas, a key feedstock for urea production. Qatar is India’s largest supplier of imported LNG.
Rating agency Moody’s has said it sees a spillover impact on India’s food inflation due to New Delhi’s reliance on imported fertilizers.
India has acknowledged disruption to fertilizer supplies due to the re-routing of shipments, which has increased the time for deliveries.
The conflicts in Ukraine and the Middle East have also escalated the prices of fertilizers globally.
