Govt gives mills 2 months to process, sell imported raw sugar; retail prices near ₹64/kg

The government has extended the timeline for sugar mills to process imported raw sugar and sell it in the domestic market, following industry concerns over shipment delays and port congestion in Brazil.

The Directorate General of Foreign Trade (DGFT), in a corrigendum issued on August 24, said raw sugar imported under the recently announced tariff rate quota (TRQ) must be converted into white/refined sugar and sold domestically within two months from the date of filing of the bill of entry.

The amendment modifies the August 20 public notice that provided for the import of 10 lakh tonnes of raw sugar under the TRQ and allowed a one-time conversion from the Advance Authorisation scheme to the TRQ scheme.

Under the earlier provision, imported raw sugar had to be processed sufficiently in advance to enable its sale in the domestic market by October 31, 2026.

The industry, in a recent meeting, told the ministries concerned that the earlier deadline was not feasible, citing congestion at Brazilian ports and a shipment time of around 40 days for cargo to reach India after allocation of import quantities.

National Federation of Cooperative Sugar Factories (NFCSF) Managing Director Prakash Naiknavare welcomed the move, calling it "a positive development" that would "encourage more mills to apply for import."

Sugar mills have already started applying online through the DGFT portal.

The DGFT may take 2-3 days to process applications and allocate quantities and mills will then sign contracts by mid-September, and, subject to port congestion, shipments are expected to reach Indian shores by the third week of October.

The government had allowed the import of 10 lakh tonnes of raw sugar amid a sharp rise in domestic prices.

Retail sugar prices continued to rise on Tuesday, with the all-India average price increasing to ₹63.97 per kg on August 25 from ₹63.05 per kg a day earlier, according to data compiled by the Department of Consumer Affairs.

The August 25 average price was 31% higher than the ₹48.81 per kg recorded a month ago and 38% above the year-ago level of ₹46.31 per kg.

The maximum retail price was ₹76 per kg, while the modal price stood at ₹65 per kg.

While retail prices remain elevated, ex-mill rates have started declining following the government's measures to boost supplies and curb speculation and hoarding.

Food Secretary Sanjeev Chopra said the ex-mill price of sugar has declined 18% to around ₹55 per kg from a record ₹67 per kg last week.

"Ex-mill price of sugar, which were jacked up by mills, have started cooling down. They have declined to ₹55 per kg and will further drop in the coming days," Chopra told PTI.

He said the rise in prices was not supported by fundamentals as India has adequate sugar stocks despite lower-than-expected production in the 2025-26 marketing year.

Sugar production is estimated at around 306 lakh tonnes in 2025-26, down from the earlier estimate of 343 lakh tonnes, while annual domestic consumption is around 280-285 lakh tonnes.

The government has maintained that the import decision, along with action against speculation and hoarding, will help improve domestic availability and moderate prices.