In a significant move to boost India’s agricultural exports, the Directorate General of Foreign Trade (DGFT) has permitted the export of up to 50,000 tonnes of organic sugar per financial year. The decision was announced on December 30, 2025, and has come into effect immediately.
What Is the Decision?
According to the latest DGFT notification, exports of organic sugar will now be allowed within a fixed annual limit of 50,000 tonnes. Earlier, organic sugar exports were placed under a restricted category and required complex licensing procedures, which limited export potential.
Under the new framework, exports will be allowed subject to compliance with the guidelines laid down by APEDA (Agricultural and Processed Food Products Export Development Authority), including mandatory certification and registration norms.
What Is Organic Sugar?
Organic sugar is produced from organically grown sugarcane, cultivated without the use of:
- chemical fertilizers,
- synthetic pesticides, or
- genetically modified inputs.
Due to its natural production process and health-friendly image, organic sugar commands a premium price in international markets, especially in developed economies.
Why Has the Government Taken This Step?
The government aims to:
- promote value-added and premium agricultural exports,
- increase farmers’ income, and
- strengthen India’s presence in the global organic food market.
Demand for organic and clean-label food products is rising sharply in regions such as Europe, the United States, and parts of Asia, creating a strong opportunity for Indian exporters.
Benefits for Farmers and the Sugar Industry
The decision is expected to:
- encourage farmers to adopt organic sugarcane cultivation,
- provide better price realization to growers and sugar mills, and
- open up new export avenues for Indian sugar producers.
Exporters are also likely to benefit from higher margins, as organic sugar typically sells at a premium compared to conventional sugar.
Impact on the Domestic Market
To ensure that domestic supply remains unaffected, the government has capped exports at 50,000 tonnes. This controlled approach aims to:
- maintain adequate sugar availability within the country, and
- prevent sharp fluctuations in domestic prices.
What Does This Signal for the Future?
Industry experts believe this move reflects a broader shift in India’s export strategy—from focusing on volume to emphasizing quality and high-value agricultural products. If global demand for organic sugar continues to grow, the government may consider revising the export limit in the future.
Outcome
The DGFT’s decision to allow the export of 50,000 tonnes of organic sugar marks a positive step for India’s organic agriculture and sugar sectors. It is expected to benefit farmers, exporters, and sugar mills while enhancing India’s reputation as a supplier of premium agricultural products in global markets.
Overall, the move highlights India’s intent to tap into the growing global demand for organic and sustainable food products while maintaining balance in the domestic market.
Source: DGFT
