Govt Imposes Cap on Pharma Sugar Exports, Curbs Imports of Gold-Alloyed Precious Metals
By Shishta Dutta | Updated at: Jan 7, 2026 02:32 PM IST
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
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