The Directorate General of Foreign Trade (DGFT) on May 13, 2026 amended the export policy for Sugar falling under ITC (HS) Codes 1701 14 90 and 1701 99 90 from “Restricted” to “Prohibited” with immediate effect till September 30, 2026, or until further orders, whichever is earlier. The restriction has been imposed under the Foreign Trade (Development & Regulation) Act, 1992 read with the Foreign Trade Policy, 2023 to regulate outbound shipment of raw, white and refined sugar.
DGFT clarified that the prohibition will not apply to sugar exports to the European Union and the United States under the CXL and TRQ quota mechanisms, exports under the Advance Authorization Scheme (AAS), Government-to-Government exports for food security requirements, and consignments already in the physical export pipeline before issuance of the notification. Existing consignments where loading had commenced, shipping bills were filed with vessel berthing completed, or consignments had already been handed over to Customs/Custodian with verifiable records prior to the notification date, will continue to be permitted.
The notification further provides that if the prohibition is not extended beyond September 30, 2026, the export policy for sugar under the concerned ITC (HS) codes will automatically revert from “Prohibited” back to “Restricted”. The transitional arrangement provisions under Para 1.05 of the Foreign Trade Policy, 2023 have specifically been made inapplicable to this notification.
[Notification No. 16/2026-27]
