India prohibits sugar exports till 30 September

India yesterday (13 May) prohibited sugar exports with immediate effect till 30 September this year as the government moved to curb domestic prices and ensure adequate availability in the domestic market amid concerns over a fall in output.

A notification issued by the Directorate General of Foreign Trade (DGFT) under the Commerce Ministry amended the export policy for sugar, shifting its exports from "restricted" to "prohibited" category.

The order covers raw sugar, white sugar, and refined sugar exports.

The notification said the prohibition would remain in force till 30 September unless extended further. If not extended, the export policy will revert to "restricted".

The government, however, said the export ban would not apply to shipments made to the European Union and the United States.

Exports of sugar under the Advance Authorisation Scheme (AAS) and government-to-government shipments for food security purposes will also continue to be permitted.

The notification also said consignments already in the export pipeline would be allowed under specific conditions.

Overseas shipments can go ahead if loading had started before the notification date or if the shipping bill had already been filed and the vessel had berthed or anchored at an Indian port before the order came into effect, the notification said.

Exports will also be allowed where consignments had already been handed over to customs authorities or custodians before publication of the notification.

India's production of sugar is expected to fall behind consumption for a second consecutive year due to weakening sugarcane yields in key growing regions.

India had earlier permitted sugar mills to export 1.59 million metric tonnes.