Amid West Asia crisis, government bans sugar exports until September 30

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The prohibition on sugar exports comes a day after the government hiked import duty on gold and other precious metals as a measure to curb non-essential imports and protect foreign exchange. The government is undertaking a series of measures to ensure energy availability and essential supplies in the country.The Directorate General of Foreign Trade (DGFT) late on Wednesday prohibited export of raw, white and refined sugar with immediate effect till September 30 amid inflation and future supply-related concerns in the backdrop of the ongoing West Asia conflict. The prohibition will not apply to sugar exports to the European Union and the US under the preferential quota, the notification said.The prohibition on sugar exports will also not apply to the advance authorisation scheme (AAS), government-to-government exports, and consignments already in the physical export pipeline, it stated.The decision to ban sugar exports is seen more as a precautionary move, given the finely balanced supply and stocks position. Sugar production in the 2025-26 season (October-September) has been estimated at about 275 lakh tonnes .With opening stocks of 50 lakh tonnes, the total availability of 325 lakh tonnes can comfortably meet the projected domestic consumption requirement of 280 lakh tonnes. It will leave the closing stocks of sugar at 45 lakh tonnes, which is the lowest since the 39.4 lakh tonnes of 2016-17.The government does not want to take any chances of lower production in the 2026-27 season from subnormal monsoon rains and anticipated shortfalls in fertiliser availability due to the West Asia crisis.The DGFT, which comes under the Ministry of Commerce and Industry, also said that the sugar exports will be allowed if the loading of sugar on the ship has commenced before May 13 or sugar consignment has been handed over to Customs before Wednesday.“The export of sugar shall be allowed on the basis of permission granted by the Government of lndia to other countries to meet their food security needs and based on the request of their governments,” the notification said.Story continues below this adThe prohibition on sugar exports comes a day after the government hiked import duty on gold and other precious metals as a measure to curb non-essential imports and protect foreign exchange. The government is undertaking a series of measures to ensure energy availability and essential supplies in the country.The ongoing West Asia conflict and its resultant impact on energy prices and supplies have given rise to inflation concerns as international fuel prices have doubled since the West Asia war. Scores of commercial vessels with thousands of seafarers have been stuck in the Persian Gulf since the West Asia war began on February 28 as vessel movements through the Strait of Hormuz came to a halt. The Strait is among the world’s most critical chokepoints for energy supplies, and accounts for a fifth of global oil and liquefied natural gas flows.  © The Indian Express Pvt LtdTags:Sugar exports