DGFT Initiates Review and Reallocation of Pharma Grade Sugar Export Quota for 2026-27
Overview
The Directorate General of Foreign Trade (DGFT), operating under the Ministry of Commerce and Industry, has formally launched a review process for the export quota allocated to Pharma Grade Sugar exporters. This initiative has been set in motion through Trade Notice No. 04/2026-27 dated May 22, 2026, which outlines a structured mechanism for evaluating quota utilization and redistributing unused quantities through a common pool arrangement managed by the Special EXIM Facilitation Committee (SEFC).
This notice builds upon the framework established by Trade Notice No. 06/2025-26 dated June 18, 2025, and subsequent notices through which Pharma Grade Sugar export quotas were originally distributed to eligible exporters.
Background and Context
Why Is This Review Being Conducted?
Pharma Grade Sugar, a high-purity form of sugar used in pharmaceutical manufacturing and allied industries, is subject to regulated export under India's foreign trade policy framework. The DGFT had previously allocated specific export quotas to eligible exporters under earlier trade notices. Given that a portion of the allocated quota may remain underutilized, the competent authority has decided to undertake a comprehensive assessment of:
- Actual utilization of previously allocated export authorizations
- Residual demand among existing allottees who may require further quantities
- Availability of surplus quota that can be pooled and redistributed to deserving exporters
The objective is to ensure that allocated quantities are put to productive use and that no export potential is wasted due to inaction or non-performance by original allottees.
Key Requirements for Exporters Under Trade Notice No. 04/2026-27
Documents and Information to Be Submitted
All exporters who received Pharma Grade Sugar export quota allocations under the referenced earlier trade notices are now required to furnish the following details to DGFT:
- Chartered Accountant-Certified Utilization Certificate
- This certificate must clearly indicate the quantity of Pharma Grade Sugar actually exported against the authorization that was allocated to the exporter.
- The certificate must be issued by a practising Chartered Accountant and is intended to provide an independently verified record of export performance.