The food ministry has approved an additional export quota of 87,587 tonnes of sugar for the 2025-26 marketing year (October-September), following requests from sugar mills, the ministry said in a circular on Monday.
The government had earlier permitted exports of 1.5 million tonnes for the season, and in February allocated an extra 500,000 tonnes to willing mills on a non-swappable basis.
Mills had until February to apply for portions of the additional quota. Of the 500,000 tonnes, only 87,587 tonnes were requested and approved, with the remainder lapsing, the ministry stated.
Mills must export the allocated sugar by June 30, 2026. Those exporting at least 70 per cent of their quota by that date will be allowed to ship the balance by September 30, 2026. Failure to meet the 70 per cent threshold will result in the unutilised quantity lapsing, with potential reallocation to higher-performing or willing mills.
No extensions will be granted except in force majeure cases. The quota cannot be swapped between mills.
Mills failing to export the mandated 70 per cent will face deductions from future export quotas equivalent to the shortfall below the threshold.
For instance, a mill allocated 1,000 tonnes exporting only 400 tonnes by June 30 would see a 300-tonne deduction applied to its next allocation.
All grades of sugar may be exported up to the allocated limit. Refineries exporting refined sugar from raw sugar supplied by mills can do so under bi- or tri-partite agreements, provided quantities remain within the original mill’s quota.
Mills violating prior stockholding limits under a March 2025 order are ineligible for quotas this season. Supplies to special economic zone refineries count as exports. Exports under the Advance Authorisation Scheme continue as before.
Violations of guidelines may trigger action under the Essential Commodities Act, 1955, and Foreign Trade (Development and Regulation) Act, 1992. Mills must report monthly exports via the minister’s NSWS portal.
The ministry retains authority to modify export modalities as needed.
India has exported 315,000 tonnes of sugar from October to February in the 2025-26 season against a total permitted quota of 1.5 million tonnes, according to recent industry data.
