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May
21

Request for additional sugar export permission

According to trade sources, Indian sugar industry wants permission from the government for the export of an additional 150,000 tonne in order to fulfill the execution of previously established export contracts, following a recent prohibition on overseas sugar shipments.

Notably, the government has recently imposed a ban on sugar exports until September 30, after previously allowing 150,000 tonne for shipment in two separate tranches.

A representative from the Indian Sugar & Bio-energy Manufacturers Association stated that the sudden restriction presents practical difficulties for mills that have binding commitments to international buyers, and fulfilling these contracts could help maintain trade credibility and ensure orderly settlements in global markets. On this issue, the association communicated this concern to the government last week.

The government implemented the export ban amid growing worries regarding El Nino, which is known to cause insufficient rainfall in India, and its potential effects on agricultural output. This action is anticipated to facilitate the release of more sugar for domestic use and to bolster the buffer stock for the upcoming year, thereby aiding in the management of domestic availability should sugar production in 2026-27 be negatively impacted by El Nino.

Industry analysts suggest that the government enacted the ban because sugar prices had already begun to rise, as production for the 2025-26 season, which runs from October 2025 to September 2026, fell significantly short of initial projections.  Meanwhile, the latest data shows that as of April 30, sugar production stood in the country at 27.53 million tonne (mt).