The Government of India has approved the export of 15 lakh tonnes (LMT) of sugar for the 2025–26 sugar season, issuing mill-wise quotas and comprehensive operational guidelines to ensure smooth and regulated shipments. All grades of sugar can be exported by a sugar mill /refinery/exporter upto the extent of quantity mentioned in the order.
The Department of Food and Public Distribution (DFPD) issued the allocation order on November 14, 2025, marking a significant move to balance domestic sugar availability with international trade opportunities.
Pro-Rata Allocation Based on Production
Export quota of 15 LMT has been allocated on pro-rata basis amongst sugar mills by taking into account their average production of sugar during last three sugar seasons (2022-23, 2023-24, and 2024-25). All operational sugar mills have been allocated a uniform export quota of 5.286% of their three-year average production.
The allocation covers 583 sugar mills across 16 sugar-producing states, with Maharashtra, Uttar Pradesh, and Karnataka emerging as the major beneficiaries given their large production bases.
Flexible Export Mechanisms
The government has introduced several flexible mechanisms to facilitate smooth export operations:
Direct Export or Through Merchants: Sugar mills can export either directly or through merchant exporters/refineries until September 30, 2026, with the last Bill of Lading (BL) date set on or before that date.
Quota Surrender Option: Mills not wishing to export can surrender their quota by March 31, 2026. The DFPD may reallocate such unutilized quotas to mills with better export performance or to willing mills.
Export-Domestic Quota Exchange: Mills can exchange their export quota (partially or wholly) with the domestic quota of other mills until March 31, 2026. This provision aims to reduce transportation costs, particularly benefiting mills located far from ports.
For example, a mill in Punjab or interior Uttar Pradesh can exchange its export quota with the monthly domestic release quantity of a mill located closer to ports, thereby avoiding high transportation costs.
Mills opting for quota swapping must submit agreements jointly to DFPD, with adjustments to be completed by September 30, 2026. The exchanged domestic quota will be released in five monthly instalments.
Monitoring and Penalties
- Mills that violated previous monthly stockholding limit orders (as per DFPD order dated March 28, 2025) will not receive any export quota this season.
- Mills with pending export-swapping adjustments from 2024–25 are barred from further swapping until resolution.
- Supplies from mills to SEZ-based refineries will count as exports.
- Exports under the Advance Authorization Scheme (AAS) will continue as per existing rules.
All mills must upload monthly export details via Form P-II on the DFPD’s NSWS portal. Any violation of export guidelines, quota misuse or non-compliance will attract strict action under the Essential Commodities Act, 1955 and the Foreign Trade (Development & Regulation) Act, 1992.
This export allocation comes at a time when India is balancing domestic sugar availability with international market opportunities. With the 2025-26 season projected to see increased sugar production, particularly in Maharashtra and Karnataka, the 15 LMT export quota allows the industry to tap into global markets while ensuring adequate domestic supply.