Kathmandu. India has imposed a temporary ban on sugar exports in a bid to ensure domestic supplies and control price rises. India, one of the world’s largest sugar producers, has decided to suspend exports till the end of September.

According to an order issued by the Indian government last night, this ban has come into effect with ‘immediate effect’. The order states that the export of sugar has been stopped except with limited exceptions. However, some consignments that are already in the process of export will be exempted.

However, the government has clarified that it would allow the export to be taken under the government agreement on food security with other countries. The new system will remain in place until September 30.

India’s decision comes amid growing concerns about the upcoming sugar production. The new sugar season, which starts in October, is expected to be affected by the El Niño season. The government is believed to have taken steps to avoid a supply crunch after meteorologists pointed to a below-average monsoon.

It is feared that less rainfall due to El Niño will have a direct impact on sugarcane production and this could reduce sugar production. Since sugar is an important raw material for the food industry along with daily consumption in India, its price rise could have a huge impact.

At the same time, the energy crisis caused by the Iran war is putting more pressure on India’s economy. India, which relies on energy supplies and fertilizer imports from the Middle East, is grappling with rising costs and supply instability. It has also made New Delhi’s economic growth forecast uncertain.

India’s new ban on sugar exports is expected to affect the international market as well. As India is one of the major suppliers to the global sugar market, the decision is likely to increase prices in the global market.

According to government data, India’s sugar exports have experienced a sharp fluctuation in recent years. In 2021-22, India exported about 11 million tonnes of sugar, which is considered to be the highest level.

But since then, there has been a sharp decline in exports. In 2022-23, exports fell to 6.3 million tonnes. In the following year, 2023-24, exports fell to 100,000 tonnes.

However, in 2024-25, the situation improved slightly to about 900,000 tonnes, according to government data. But as uncertainty mounts over future production and supply, the government has again opted for tighter controls.