Export of Pharma Grade Sugar Under Restricted Category

CCl- Compliance Calendar LLP

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The Directorate General of Foreign Trade (DGFT), under the Ministry of Commerce & Industry, has issued Trade Notice No. 06/2025-26 dated June 18, 2025, inviting applications for the export of Pharma Grade Sugar under the restricted category. This move comes after the Government of India released Notification No. 17 dated June 17, 2025, allowing such exports under specific conditions.

This article provides a complete understanding of the notification, its conditions, the procedure for application, and answers to frequently asked questions. The goal is to ensure pharma exporters understand their obligations and opportunities under the new export window.

Purpose of the Trade Notice

The Trade Notice serves as a public communication by DGFT to: 

  • All Regional Authorities of DGFT

  • All Customs Commissionerates

  • Members of Trade 

It informs eligible pharmaceutical exporters that they can apply for a one-time allocation to export Pharma Grade Sugar under restricted export authorization, subject to regulatory safeguards.

Notification Permitting Pharma Grade Sugar Export

Through Notification No. 17 dated June 17, 2025, the Government of India has permitted the export of Pharma Grade Sugar under the restricted export category. This means that unlike freely exportable items, Pharma Grade Sugar can only be exported with prior authorization and within defined limits.

Key Safeguards for Export Authorization

The export is not entirely open but is governed by a few strict conditions. These safeguards ensure that only genuine and compliant exporters can benefit from this provision. The safeguards include:

Export Cap in a Financial Year 

The total quantity of Pharma Grade Sugar that can be exported under this scheme shall not exceed 25,000 metric tonnes (MTs) in a financial year. This cap ensures that domestic availability is not compromised and prevents over-exporting.

Mandatory Drug Manufacturing License 

Applicants must mandatorily submit a valid drug manufacturing license issued by the concerned State Licensing Authority. This condition ensures that only authorized pharmaceutical manufacturers are eligible for exporting the sugar, maintaining the purity and intended pharmaceutical use.

Test Reports and Certifications

Exporters must submit: 

  • Test reports

  • Certification from NABL-accredited laboratories 

These documents must confirm that the sugar complies with Pharma Grade specifications. This compliance must be demonstrated at the time of actual export. NABL stands for the National Accreditation Board for Testing and Calibration Laboratories, and its certification ensures the highest standards in testing.

Allocation of Export Quota

The DGFT has decided to allocate a one-time quota of 25,000 MT of Pharma Grade Sugar under the restricted category. This quota will be available to bonafide pharmaceutical exporters during the current sugar season, i.e., up to September 30, 2025.

Exporters must apply within the window announced by DGFT, and applications will be considered only if they meet the eligibility criteria.

Application Procedure for Export Authorization

Exporters interested in exporting Pharma Grade Sugar must follow the application process outlined in the Trade Notice. Here’s a detailed step-by-step explanation:

Application Window 

Only applications filed between June 20, 2025, and July 20, 2025, will be considered. Applications received before or after this period will not be entertained.

ITC (HS) Codes for Pharma Grade Sugar 

Exporters must file applications under the following ITC (HS) Codes:

  • 17011490

  • 17019990 

These codes represent Pharma Grade Sugar and help customs and licensing authorities identify the category under which the goods fall.

Submission Platform 

All applications must be submitted online through the DGFT’s ECOM system. This portal is designed for handling Export Authorizations for Non-SCOMET Restricted Items.

Applicants should ensure they are registered on the DGFT portal and have access to the ECOM system before attempting to apply.

Key Considerations for Exporters 

  • The export license is granted only after verifying the documentation and ensuring the applicant is a bonafide pharma exporter.

  • The process is not first-come, first-served. Applications will be scrutinized based on merit, documentation, and adherence to the safeguards.

  • Exporters must ensure timely and accurate submission of NABL reports and the drug license, or else their application may be rejected.

  • Only sugar meeting Pharma Grade specifications will be allowed for export, meaning no food-grade or industrial sugar can be exported under this notification. 

Implications of the Trade Notice

This trade notice enables Indian pharmaceutical exporters to access international markets for Pharma Grade Sugar, which is a critical ingredient in many medicinal formulations. At the same time, the government has imposed strict control measures to prevent misuse of the export window and protect domestic needs.

The one-time allocation system, combined with the requirement for stringent documentation, strikes a balance between facilitating trade and ensuring compliance.

Benefits for Bonafide Exporters 

  • Access to international markets for value-added products.

  • Promotion of India’s pharma sector by exporting high-quality ingredients.

  • Greater transparency through DGFT’s ECOM system for authorization. 

Challenges Exporters May Face 

  • Time-bound application window.

  • Gathering valid NABL test certifications on time.

  • Coordination with State Drug Licensing Authorities to obtain updated licenses. 

These challenges underline the importance of advance preparation and maintaining compliance with licensing and quality standards throughout the year.

Conclusion

The DGFT’s Trade Notice No. 06/2025-26 represents a strategic decision to support India's pharmaceutical exports while maintaining strict quality and safety standards. By allowing the export of Pharma Grade Sugar under a controlled mechanism, the government aims to promote global trade without compromising domestic interests.

Pharmaceutical exporters should take this opportunity seriously, ensuring their documentation is in order and applications are submitted well before the July 20 deadline. This initiative also reinforces the role of regulatory compliance in facilitating international business and building India's reputation as a reliable exporter of quality pharmaceutical products.

Frequently Asked Questions (FAQs)

Q1. What is the total quantity of Pharma Grade Sugar allowed for export under this Trade Notice?

Ans. The DGFT has set a cap of 25,000 metric tonnes (MT) for the export of Pharma Grade Sugar under this notification.

Q2. What is the timeline to apply for export authorization?

Ans. Applications will only be accepted from June 20, 2025, to July 20, 2025.

Q3. Who is eligible to apply for this export authorization?

Ans. Only bonafide pharmaceutical exporters holding a valid drug manufacturing license from the concerned State Licensing Authority are eligible.

Q4. What documents are required for applying?

Ans. Applicants must submit a valid drug manufacturing license and NABL-accredited test reports confirming that the sugar meets Pharma Grade specifications.

Q5. Which platform must be used to apply for export authorization?

Ans. Applications must be submitted online through the DGFT’s ECOM system for Non-SCOMET Restricted Items.

Q6. What are the ITC (HS) Codes mentioned for Pharma Grade Sugar export?

Ans. The applicable ITC (HS) Codes are 17011490 and 17019990.

Q7. What happens if my application is submitted after the due date?

Ans. Applications submitted after July 20, 2025, will not be considered for export authorization.

Q8. Can food-grade sugar be exported under this scheme?

Ans. No. Only sugar that meets the Pharma Grade specifications, supported by valid NABL reports, can be exported under this notice.

Q9. Is the quota on a first-come, first-served basis?

Ans. No. The DGFT will scrutinize applications and allocate quota based on compliance with safeguards, not on application timing.

Q10. Where can I find more information on submitting the application?

Ans. Applicants should refer to the official DGFT website and the Trade Notice on the ECOM system for Non-SCOMET items for detailed instructions.

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