- By Aditya Jha
- Thu, 14 May 2026 11:33 AM (IST)
- Source:JND
India Sugar Export Ban: Amid the ongoing West Asia crisis, India has prohibited exports of raw and refined sugar until September 30, 2026. The move is largely seen as an attempt to protect the domestic supplies and control the inflation amid the tension between Iran and the US. In its notification, the Directorate General of Foreign Trade (DGFT) asserted that India will not export white sugar for the next few months. The reports suggest that the policymakers have been worried about the rising import costs and supply disruptions.
Why Was the Prohibition Announced?
- India wants to ensure sufficient availability of sugar and controlled prices if the tension in West Asia intensifies
- The experts believe that continued export can reduce the buffer stock, potentially leading to crisis if the tensions continues, reported the Economic Times
- The policymakers believe that limiting the export of sugar will benefit the middle class and manufacturers associated with the beverage business
- The government is also expected to take similar steps to control the inflation, as a sustained increase in food prices can affect the retail inflation
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- Apart from this, the diversion of sugarcane towards ethanol production can also lower the overall white sugar production
- The centre, to control inflation and ensure sufficient balance, has prioritised the domestic market over export commitments
Will Desserts Get Costlier?
- A prohibition on export is likely to temporarily keep the prices in check
- As per the experts, the prices could increase in the later months due to the additional transportation cost if the war intensifies
- Indian kitchens are likely to feel indirect pressure due to higher fuel prices and transportation cost
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- The beverage industry is also expected to deal with crisis due to the potential fuel crisis in the upcoming months
- Prime Minister Narendra Modi recently advised the citizens to invest wisely and reduce the consumption of oil and sugar