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The notification issued by the Directorate General of Foreign Trade (DGFT) said exports of raw sugar, white sugar and refined sugar under ITC (HS) codes 1701 14 90 and 1701 99 90 will remain prohibited till 30 September 2026 or until further orders. Sugar stocks came under pressure following the announcement. Shares of major listed sugar companies including Ugar Sugar Works (down 1.56%), EID Parry (down 1.64%), Shree Renuka Sugars (down 1.69%), Balrampur Chini Mills (down 2.34%), Mawana Sugars (down 3.39%), Triveni Engineering & Industries (down 3.77%), Dalmia Bharat Sugar and Industries (down 3.98%) and Dhampur Sugar Mills (down 6.95%) declined. India, the world's second-largest sugar producer, had earlier allowed exports of 1.59 million metric tonnes on expectations of surplus production. However, lower cane yields across key producing regions have raised concerns that sugar output could remain below domestic consumption for a second consecutive year. Industry estimates suggest sugar production for the 2025-26 season may remain below 280 lakh tonnes, while opening stocks stood at around 50 lakh tonnes. Domestic sugar consumption is estimated at around 280 lakh tonnes, which could leave closing stocks near 45 lakh tonnes, among the lowest levels seen in recent years. The notification clarified that exports to the European Union and the United States under CXL and TRQ quota arrangements will continue. Exports under the Advance Authorisation Scheme will also remain permitted. The DGFT further said consignments already in the export pipeline before publication of the notification will be allowed subject to specified conditions. The move comes amid broader government measures aimed at curbing non-essential imports and protecting foreign exchange reserves amid rising global commodity prices and geopolitical tensions. Powered by Capital Market - Live News
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