DGFT Prohibits Sugar Exports Until September 30, 2026 — Full Breakdown of Notification No. 16/2026-27
Overview of the Export Policy Amendment
The Directorate General of Foreign Trade has issued Notification No. 16/2026-27 dated 13th May, 2026, bringing about a significant shift in India's sugar export policy. Through this notification, the export status of sugar under ITC (HS) Codes 1701 14 90 and 1701 99 90 has been escalated from "Restricted" to "Prohibited" with immediate effect. This prohibition is operative until September 30, 2026, or until further orders are issued by the Central Government, whichever comes earlier.
The notification has been issued by the Central Government in exercise of its powers under Section 3 read with Section 5 of the Foreign Trade (Development & Regulation) Act, 1992 (No. 22 of 1992), as amended, and in conjunction with Para 1.02 and Para 2.01 of the Foreign Trade Policy, 2023.
This development carries significant implications for exporters, trade entities, and related stakeholders operating in the sugar trade sector. A clear understanding of the exemptions, transitional conditions, and the policy reversion mechanism is essential to ensure compliance and operational continuity.
Products Covered Under the Prohibition
The prohibition applies broadly to the following categories of sugar under Chapter 17 of ITC (HS) Schedule — II:
| ITC (HS) Code | Product Description | Previous Policy | Revised Policy |
|---|---|---|---|
| 1701 14 90 | Raw Sugar | Restricted | Prohibited |
| 1701 99 90 | White Sugar and Refined Sugar | Restricted | Prohibited |
Important Note: The prohibition takes effect immediately from the date of publication of this Notification in the Official Gazette and remains operative through September 30, 2026, unless further orders modify or extend this timeline.
All three major variants — raw sugar, white sugar, and refined sugar — are covered under this blanket prohibition. Exporters dealing in any of these forms of sugar must treat the policy status as "Prohibited" unless they fall within one of the specifically carved-out exempt categories discussed below.
Legal Basis and Authority
The Central Government has invoked Section 3 and Section 5 of the Foreign Trade (Development & Regulation) Act, 1992 to issue this notification. These provisions empower the Central Government to prohibit, restrict, or regulate the export and import of goods in the interest of the general public or to protect domestic supply considerations.
Additionally, Para 1.02 of the Foreign Trade Policy, 2023 establishes the government's authority to amend the policy through official notifications, while Para 2.01 governs the general framework for export and import policy status classifications, including "Free," "Restricted," "Prohibited," and "State Trading Enterprise" (STE) categories.