Why did India prohibit the export of raw, white and refined sugar?

India prohibited the export of raw, white and refined sugar till September 30 as a precautionary measure amid inflation and future supply-related concerns in the backdrop of the ongoing West Asia conflict. The government aims to maintain domestic price stability and ensure adequate sugar availability. Sugar production for the 2025-26 season (October-September) is estimated at about 275 lakh tonnes.

Does the sugar export ban apply to exports to the European Union and the United States?

No. The prohibition does not apply to sugar exports to the European Union and the United States under the preferential quota system.

Is the Advance Authorisation Scheme (AAS) affected by the sugar export prohibition?

No. The sugar export prohibition does not apply to the Advance Authorisation Scheme (AAS), government-to-government exports, or consignments already in the physical export pipeline.

Is India the largest importer of gold in the world?

No. India is the second-largest importer of gold globally. In 2025-26, India imported approximately $72 billion worth of gold, which was 24% higher than the previous financial year. Gold is the second-largest item in India’s import bill after crude oil.

Did India's silver imports decrease in 2025-26?

No. India’s silver imports increased significantly in 2025-26. Silver imports amounted to approximately $12 billion, more than double the $4.8 billion imported in the previous year.

What is TARGET Instant Payment Settlement (TIPS)?

TARGET Instant Payment Settlement (TIPS) is an instant payment system operated by the Eurosystem. It enables real-time fund transfers across the euro area. The Reserve Bank of India and the European Central Bank have initiated cooperation for linking India's UPI system with TIPS.

What is coal gasification?

Coal gasification is a thermochemical process that converts coal into synthesis gas (syngas), a mixture of carbon monoxide, hydrogen, carbon dioxide, and methane. The process involves oxidation of coal at high temperatures and pressures. Syngas can be used to produce synthetic natural gas, electricity, methanol, ammonia, fertilizers, and chemicals.

Why is coal gasification important for India’s energy security?

Coal gasification enhances India’s energy security by reducing dependence on imports of LNG, urea, ammonia, and methanol. India possesses the fourth-largest coal reserves globally, estimated at 389 billion tonnes, including 212 billion tonnes of proven reserves.

What is the Deviation Settlement Mechanism (DSM) in India?

The Deviation Settlement Mechanism (DSM) is a regulatory framework in India that imposes financial penalties on power generators and distribution companies for deviating from scheduled electricity generation or consumption. DSM helps maintain grid stability and ensures disciplined power market operations.

How does geopolitical conflict affect India's import bill?

Geopolitical conflicts, especially in West Asia, can disrupt crude oil supply chains and international shipping routes. As India is a large importer of crude oil, elevated energy prices and supply disruptions increase the import bill, contribute to inflationary pressures, and widen the Current Account Deficit (CAD).

Daily UPSC Prelims MCQs - Economy - 18th May 2026

Jigyashu Mishra
May 18
1 min read

Test your UPSC CSE 2026 preparation with today’s Economy (Every Monday) Quiz — covering India’s imports of gold and silver, TARGET Instant Payment Settlement (TIPS), coal gasification, Deviation Settlement Mechanism (DSM) and more.

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