India bans sugar exports through Sept 2026 as closing stocks hit record-low 3.5-3.8 mt

DGFT halts sugar exports immediately to protect domestic supply, with exemptions only for EU/US quotas and Advance Authorization. ISMA flags 0.75 mt of unshipped contracts at risk despite 28 mt net production forecast. Closing stocks projected at just 1.5 months of demand.

— FiledThu, 14 May, 2026, 21:27 IST·First seen Thu, 14 May, 2026, 22:46 IST·Source BL · Consumer & Economy

What happened

Government of India · India bans sugar exports immediately through September 30, 2026 to stabilize domestic prices, with exemptions for EU/US quota shipments

Key facts

  • 1.59 mt export quota
  • 0.53 mt shipped by end-March
  • 0.75 mt industry estimate
  • 1 mt total contracts
  • 0.2 mt retained
  • 28 mt net production 2025-26
  • 26.1 mt prior season
  • 3.5-3.8 mt closing stocks
  • 1.5 months of demand

Why this matters

The 0.75 mt of stranded export contracts and tight 1.5-month domestic cover create distressed-asset and supply-agreement opportunities with Indian millers seeking liquidity outside EU/US quota channels.