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India bans sugar exports until September 30 releasing 4-5 lakh tonnes for domestic demand
Economy
Published on 14 May 2026
Mills rely on exports to pay farmers on time
India has prohibited sugar exports until September 30, a move expected to free 4-5 lakh tonnes for domestic consumption. The government cites El Nino risks that could affect 2026-27 production, aiming to strengthen next year’s buffer stock. But the abrupt export stoppage may squeeze sugar mill liquidity, especially as mills need cash for high cane payment schedules in Maharashtra and Karnataka. Overseas demand had surged after longer Brazil shipping times, and recent export volumes had jumped sharply.
- Export ban runs until September 30 with immediate effect
- It is expected to release 4-5 lakh tonnes, about 1.7% of annual demand
- Goal is to boost buffer stock ahead of possible El Nino hit to 2026-27
- Mills may face short-term liquidity pressure from quota-linked exports
- India’s exports contracted to ~3 lakh tonnes in 45 days after Brazil delays
- Stocks in transit may be redirected, potentially at discounted realizations
Read the full story at The Economic Times
This summarization was done by Beige for a story published on 
The Economic Times