Govt Imposes Cap on Pharma Sugar Exports, Curbs Imports of Gold-Alloyed Precious Metals

June 18, 2025: The Directorate General of Foreign Trade (DGFT), operating under the Foreign Trade Policy (FTP) 2023, has announced two significant amendments to India’s trade policy. These changes, effective immediately, impact the export of pharma-grade sugar and the import of certain precious metals.

Both trade amendments are issued under Section 3 and Section 5 of the Foreign Trade (Development & Regulation) Act, 1992, read with Para 1.02 and 2.01 of the Foreign Trade Policy (FTP) 2023.

Pharma Grade Sugar Exports Capped at 25,000 MT Annually

Under Notification No. 17/2025-26, the government has introduced a “Restricted Export Authorization” for Pharma Grade Sugar. This means that while bona fide pharmaceutical exporters can now export this specialised sugar, a strict annual ceiling of 25,000 metric tonnes (MT) has been imposed for each financial year.

Key Conditions for Export of Pharma Grade Sugar

Condition	Requirement
Export Cap	25,000 MT per year
Eligibility	Bonafide Pharma Exporters
License Requirement	Valid drug manufacturing license from the State Licensing Authority
Compliance	NABL-certified test reports confirming Pharma Grade Sugar standards

Exports to the EU, USA, and UK under CXL (Concessional Access) or TRQ (Tariff Rate Quota) quotas will continue to require prior permissions and adhere to quota regulations managed by DGFT Mumbai and APEDA. This move aims to ensure a targeted supply of essential drugs for manufacturing while controlling outbound trade.

Import of Precious Metals With Gold Content Now Restricted

In Notification No. 18/2025-26, DGFT has revised the import policy for several precious metals. Specifically, the import of Palladium, Rhodium, Iridium, Osmium, and Ruthenium is now restricted if they contain more than 1% gold by weight.

Revised Import Policy Conditions

ITC (HS) Code	Item Description	New Condition
71102100	Palladium – unwrought/powder	Restricted if >1% gold
71102900	Palladium – other	Same as above
71103100	Rhodium – unwrought/powder	Same as above
71103900	Rhodium – other	Same as above
71104100	Iridium, Osmium, Ruthenium – unwrought/powder	Same as above
71104900	Iridium, Osmium, Ruthenium – other	Same as above

This policy shift applies across free and restricted imports, strengthening gold monitoring and aligning with customs surveillance frameworks.

Strategic Rationale

This policy shift, applicable to both free and restricted import categories, aims to enhance the monitoring of gold imports and align with existing customs surveillance frameworks, thereby curbing the potential misuse of gold routed through technical alloys.

REF:

https://content.dgft.gov.in/Website/dgftprod/6755fceb-8b84-435e-a580-71e16b8a314b/Notification 18 eng_0001_0001.pdf

https://content.dgft.gov.in/Website/dgftprod/9d39db56-b963-418c-9238-6ed5221ba1f7/Notification no 17 english version.pdf

Disclaimer:  At HDFC SKY, we take utmost care and due diligence in curating and presenting news and market-related content. However, inadvertent errors or omissions may occasionally occur.

If you have any concerns, questions, or wish to point out any discrepancies in our content, please feel free to write to us at content@hdfcsec.com.

Please note that the information shared is intended solely for informational purposes and does not make any investment recommendations