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The government has allowed up to 10 lakh tonnes of raw sugar to be imported duty-free till October 31, 2026. This is a decision taken in an effort to make sugar available and control the rise in prices. The increase in sugar prices had been seen in the previous months and further increase is anticipated in the coming festival season. DGFT amended the import policy to allow the quantity of sugar under TRQ (Tariff Rate Quota) arrangement.
Reason for Allowing Duty-Free Sugar Imports by the Government
This decision has been taken due to a sharp increase in the domestic price of sugar. The average price of all-India sugar price was ₹5,400-₹5,500 per quintal against ₹3,900 per quintal in the same period of last year.
Prices at the retail level have also been increased. According to the consumer affairs data reported in the news article, the average retail price of sugar increased to ₹52.3 per kg from ₹46.34 per kg last year.
Import without customs duties will help increase supply and reduce price pressure.
What Is the Sugar Import Quota?
DGFT has allowed imports of 10 lakh metric tonnes (MT) of raw sugar under Tariff Rate Quota without any duty.
The permission is valid till October 31, 2026. This policy is thus temporary in nature.
Festivals Create Additional Demand for Sugar
Generally, sugar demand increases between August and November, due to the occurrence of Indian festivals in this period.
There is an increased demand for sweets, beverages, and processed food products due to events such as Ganesh Chaturthi, Dussehra, and Diwali. This seasonal demand may create some pressure on sugar stocks within India.
This import decision of the government is meant to meet the demands in this period.
Stock Holding Limit Set by Government for Bulk Consumers
In addition to this import decision, the government has set a stockholding limit on bulk sugar consumers.
Bulk sugar consumers are those business organizations that consume more than 10 metric tonnes of sugar per month. They will not be allowed to keep stocks above 15 days of consumption.
This is applicable only from September 1, 2026 to November 30, 2026.
