Tax, GST & International Trade Blog

The Government of India has partially modified its earlier restriction on the export of organic sugar.
Through a notification issued under the Foreign Trade (Development & Regulation) Act, 1992, read with the Foreign Trade Policy (FTP), 2023, the Central Government has allowed the export of organic sugar, subject to a strict quantitative ceiling.

This change modifies Notification No. 36/2023 dated 18th October 2023 and applies with immediate effect. Exporters must comply with the revised policy condition, procedural requirements under FTP 2023, and the modalities prescribed separately by APEDA.

Legal Basis of the Notification

The notification has been issued under the following statutory and policy provisions:

• Section 3 read with Section 5 of the Foreign Trade (Development & Regulation) Act, 1992
• Para 1.02 and Para 2.01 of the Foreign Trade Policy, 2023
• Partial modification of Notification No. 36/2023 dated 18.10.2023

These provisions empower the Central Government to regulate, restrict, or permit exports in public interest and prescribe conditions for such trade.

Export Policy Change for Organic Sugar

Earlier, the export of organic sugar under specified HS codes was restricted till further orders.
The revised notification now permits export, but only within a defined quantitative limit per financial year.

HS Codes Covered Under the Notification

The policy change applies exclusively to the following tariff items:

• HS Code 1701 14 90
• HS Code 1701 99 90

Both tariff items relate to organic sugar.

Revised Export Policy Conditions

Export Ceiling and Compliance Requirements

While export is now permitted, it is not free export. The following conditions must be strictly adhered to:

• Overall export ceiling: 50,000 Metric Tonnes (MT) per financial year
• Allocation mechanism: As per procedures prescribed under FTP 2023, updated from time to time
• Implementing authority: Export to be regulated as per modalities prescribed by APEDA

The notification does not provide automatic entitlement to exporters. Allocation, monitoring, and compliance will be governed through APEDA-issued guidelines.

Role of APEDA in Organic Sugar Exports

The notification explicitly states that exports will be allowed as per the modalities prescribed by the Agricultural & Processed Food Products Export Development Authority (APEDA).

This implies that exporters must:

• Follow APEDA-issued procedures for allocation or registration
• Adhere to any quantity distribution mechanism notified separately
• Comply with documentation and traceability norms applicable to organic products

The notification itself does not detail these modalities; they are to be prescribed separately by APEDA.

Conclusion

The Central Government has allowed the export of organic sugar under HS codes 17011490 and 17019990, reversing the earlier blanket restriction. However, this permission is conditional and tightly regulated, with an annual export cap of 50,000 MT.

Exports will be governed by:

• FTP 2023 procedures
• APEDA-prescribed modalities
• Continuous monitoring of the overall ceiling

For exporters, this notification opens a limited export window rather than a liberalised regime. Non-compliance with quantity limits or procedural requirements may still result in rejection or regulatory action.

Notification Reference:  DGFT
Notification No. 51/2025-26
29 /12 /2025