India Bans Most Sugar Exports Until 2026, Driving Global Prices Higher

India has implemented an immediate ban on most sugar exports, effective until September 30, 2026, to address domestic supply shortages and rising local prices. The Directorate General of Foreign Trade changed the export status from restricted to prohibited, covering raw, white, and refined sugar. This decision stems from lower sugarcane output in key producing states and concerns over future crop cycles, marking the second consecutive year where production falls below domestic demand. While exemptions exist for quota commitments to the United States and European Union, as well as specific humanitarian cases, nearly 90% of India's sugar trade is affected. As the world's second-largest sugar producer after Brazil, India's move has already triggered an increase in global sugar prices. The ban primarily impacts importers in Africa, West Asia, and South Asia, with Somalia, Sudan, and Djibouti identified as the largest buyers in 2026. This restriction adds pressure to global markets, particularly affecting regions heavily reliant on Indian supplies, while exempting shipments already in transit or under specific government-to-government food security agreements.