New Delhi: India has banned the export of raw, white and refined sugar with immediate effect, extending restrictions on overseas shipments until September 2026, in a move aimed at ensuring adequate domestic availability and stabilising prices amid concerns over supply.
The government’s decision is expected to impact global sugar trade, given India is one of the world’s largest sugar producers and exporters.
The notification to ban exports of sugar is issued by the Ministry of Commerce and Industry.
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The production of sugarcane in the country has been increasing during the last five years, except in 2023-24, when a slight decline was observed.
Sugarcane production in the country has increased from 4053.99 lakh tonnes in 2020-21 to 4546.11 lakh tonnes in 2024-25, registering an overall rise of 492.12 lakh tonnes during the period. Further, as per the first advance estimate 2025-26 the sugarcane production is estimated at 4756.14 lakh tonne.
The farmers’ payments are not solely dependent upon sugarcane production, other factors such as Fair and Remunerative Price (FRP) / State Advised Price (SAP) of sugarcane also plays major role in sugarcane payment to the farmers.
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Due to the timely policy interventions of the Government in terms of timely declaration of FRP, policy regarding diversion of surplus sugar to ethanol production, decision on sugar export etc., sugar mills have been able to release sugarcane payments to farmers promptly.
Earlier this month, keeping in view interest of sugarcane farmers (Ganna Kisan), the Cabinet Committee on Economic Affairs chaired by the Prime Minister Narendra Modi approved Fair and Remunerative Price (FRP) of sugarcane for Sugar Season 2026-27 (October - September) at Rs.365/qtl for a basic recovery rate of 10.25%, providing a premium of Rs.3.56/qtl for each 0.1% increase in recovery over and above 10.25%, & reduction in FRP by Rs.3.56/qtl for each 0.1% decrease in recovery.
The Government with a view to protect interest of sugarcane farmers has also decided that there shall not be any deduction in case of sugar mills where recovery is below 9.5%, CCEA has said. Such farmers will get Rs.338.3/qtl for sugarcane in ensuing sugar season 2026-27.
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The cost of production (A2 +FL) of sugarcane for the Sugar Season 2026-27 is Rs.182/qtl. This FRP of Rs.365/qtl at a recovery rate of 10.25% is higher by 100.5% over production cost. The FRP for Sugar Season 2026-27 is 2.81% higher than current Sugar Season 2025-26.
The FRP approved shall be applicable for purchase of sugarcane from the farmers in the Sugar Season 2026-27 (starting w.e.f. 1st October, 2026) by sugar mills.
The sugar sector is an important agro-based sector that impacts the livelihood of about 5 crore sugarcane farmers and their dependents and around 5 lakh workers directly employed in sugar mills, apart from those employed in various ancillary activities including farm labour and transportation.
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