The Directorate General of Foreign Trade (DGFT) has issued a notification amending the export policy for sugar. Effective immediately, the new policy specifically permits the export of Pharma Grade Sugar under a Restricted Export Authorization, subject to an annual quantitative ceiling and stringent safeguards. This notification was published on June 25, 2025.
This amendment falls under Chapter 17 of Schedule-II (Export Policy), ITC (HS) 2022, and is a targeted modification to the broader sugar export policy. The export of other types of sugar, including Raw, White, Refined, and Organic Sugar, remains “Restricted till further orders” and requires specific permission from the Directorate of Sugar, Department of Food and Public Distribution (DFPD). Existing provisions for sugar exports to the EU under CXL Quota and to the USA and UK under Tariff Rate Quotas (TRQ) remain unchanged.
Key Provisions for Pharma Grade Sugar Export
The newly introduced Clause 5 in the export policy allows for the export of Pharma Grade Sugar under the following conditions and safeguards:
- Export Limit: Total exports of Pharma Grade Sugar in a financial year shall not exceed 25,000 Metric Tons (MTs).
- Restricted Export Authorization: Exports will be permitted only against a Restricted Export Authorization.
- Mandatory Submissions: Bonafide Pharma Exporters seeking to export Pharma Grade Sugar must submit:
- A valid drug manufacturing license issued by the concerned State Licensing Authority.
- Requisite test reports and certification from NABL (National Accreditation Board for Testing and Calibration Laboratories) accredited laboratories, confirming compliance with Pharma Grade Sugar specifications at the time of actual exports.
This policy adjustment aims to facilitate the export requirements of the pharmaceutical industry for specialized sugar while ensuring regulated trade. The notification is issued in exercise of powers conferred by Section 3 read with Section 5 of the Foreign Trade (Development & Regulation) Act 1992, and Para 1.02 and 2.01 of the Foreign Trade Policy 2023.
