Notification No. 16/2026-27, Dated 13-05-2026
The Directorate General of Foreign Trade (DGFT) has issued a notification amending the export policy of Sugar, including Raw Sugar, White Sugar and Refined Sugar, falling under ITC (HS) Codes 1701 14 90 and 1701 99 90. The export policy has been changed from ‘Restricted’ to ‘Prohibited’ with immediate effect.
The prohibition shall remain effective till 30-09-2026, or until further orders, whichever is earlier.
1. Scope of the Prohibition
The revised policy applies to exports of:
- Raw Sugar
- White Sugar
- Refined Sugar
covered under the specified ITC (HS) Codes.
The move is aimed at regulating domestic sugar availability and managing food security considerations.
2. Exceptions to the Export Prohibition
The notification provides certain specific exemptions where exports shall continue to be permitted despite the prohibition.
2.1 Export to EU and USA Under Quota Arrangements
The prohibition shall not apply to sugar exports made:
- To the European Union (EU) and the United States of America (USA)
- Under CXL and Tariff Rate Quota (TRQ) arrangements
2.2 Export Under Advance Authorisation Scheme
Exports of sugar under the Advance Authorisation Scheme (AAS) shall continue to be permitted.
2.3 Government-Approved Exports for Food Security Needs
The prohibition shall also not apply to exports specifically permitted by the Government of India to other countries based on requests from their governments for meeting food security requirements.
3. Transitional Relief for Existing Export Consignments
The notification grants limited relief for consignments already in the export pipeline before publication of the notification in the Official Gazette.
3.1 Cases Where Prohibition Will Not Apply
The prohibition shall not apply where:
- Loading of sugar on the ship had commenced before publication of the notification; or
- The Shipping Bill had already been filed and:
-
- the vessel had berthed; or
- the vessel had arrived and anchored at an Indian port with a rotation number allocated by the Port Authority before publication of the notification; or
- The sugar consignment had already been handed over to Customs or Custodian before publication of the notification and was registered in the electronic system with verifiable date and time evidence.
4. FTP Transitional Arrangement Not Applicable
The notification specifically provides that Para 1.05 of the Foreign Trade Policy, 2023, relating to transitional arrangements, shall not apply in this case. Accordingly, exporters cannot claim the benefit of the general transition provision under the FTP for exports covered by this prohibition.
5. Reversion of Export Policy After Expiry
The notification further clarifies that if the prohibition is not extended beyond 30-09-2026, the export policy for sugar shall automatically revert from ‘Prohibited’ back to ‘Restricted’.
6. Objective of the Notification
The amendment seeks to regulate sugar exports in view of domestic supply management and food security considerations, while continuing to honour international quota commitments and Government-approved export obligations.
