India has halted sugar exports with immediate effect, announcing that shipments will be suspended until September 30, 2026, or until further notice. This move aims to control domestic prices as sugar production in India, the world's second-largest producer, faces challenges. The ban encompasses both raw and white sugar, though exceptions apply to some shipments already in transit.
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Previously, India allowed sugar mills to export 1.59 million metric tons, expecting output to surpass domestic consumption. However, production forecasts have shifted due to reduced sugarcane yields, marking the second consecutive year where consumption may outpace production. There's growing anxiety over potential El Niño conditions affecting this year's monsoon, posing a threat to next season's sugar output.
Dealers reported exporters had arranged contracts for approximately 800,000 tons out of the permitted 1.59 million metric tons, with over 600,000 tons already dispatched. The government outlined that consignments could proceed if loading began before the official notification's publication. Additionally, shipments will be allowed if sugar was submitted to customs, or if a shipping bill is filed with the vessel at an Indian port.
A dealer from a global trade house in Mumbai mentioned that traders now face challenges completing export deals spurred by extra quotas announced in February. This decision is anticipated to elevate global sugar prices and provide Brazil and Thailand opportunities to expand exports to Asia and Africa.
Following India's announcement, New York raw sugar futures increased by over 2%, while London white sugar futures leaped 3%.
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Adapted by ASEAN Now · The Nation · 14 May 2026
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