Govt allows duty-free imports of 10 lakh tonnes raw sugar until Oct 31

The government on Thursday allowed duty-free import of up to 10 lakh tonnes of raw sugar till October 31, 2026, amid efforts to augment domestic supplies.

"The import policy for raw sugar is amended to allow 10 lakh MT of duty-free imports under Tariff Rate Quota (TRQ) till October 31, 2026," the Directorate General of Foreign Trade said in a notification.

The move comes at a time when domestic sugar prices have touched record highs.

The all-India average ex-mill sugar price touched an all-time high of ₹5,400-5,500 a quintal on Tuesday.

The ex-mill price stood at ₹3,900 a quintal a year ago.

In line with rise in ex-mill rates, the average all-India retail price of sugar rose 13% to ₹52.3 a kg on August 18 this year, from ₹46.34 a kg a year earlier, according to data from the consumer affairs ministry.

Demand for sugar typically rises between August and November, as the country celebrates major festivals, such as Ganesh Chaturthi, Dussehra, and Diwali.

The government has also imposed a stockholding limit on bulk consumers of sugar, directing businesses that consume more than 10 metric tonnes of sugar a month to hold inventories for no more than 15 days.

The order will come into force from September 1 and remain effective until November 30.

Under the order, no bulk consumer using more than 10 metric tonnes of sugar per month as a raw material for production, consumption or use can keep stocks for more than 15 days.

The restriction will apply to confectioners, soft drink manufacturers, food processing industries, sweetmeat sellers and other institutional buyers consuming at least 10 metric tonnes of sugar a month on average during the last one year, excluding the current month.

Government institutions at the central and state levels, Union Territory administrations and local bodies have been exempted from the order.