India allows duty-free imports of 1 million metric tons of raw sugar

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

The government on Thursday allowed duty-free imports of 10 lakh tonnes of raw sugar under tariff rate quota till October 31 amid rising prices of the sweetener in local markets.

Sugar prices in India have risen by nearly 40% in two months as lower production has tightened supplies, forcing India to import sugar for the first time in nearly a decade.

The move is aimed at enhancing domestic availability and capping price rise.

"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 order has come against the backdrop of a sharp rise in sugar prices, with ex-mill rates hitting record levels due to a lower opening stock ahead of the 2026-27 season. The all-India average ex-mill price rose to ₹5,400-5,500 a quintal on Tuesday, up from ₹3,900 a year earlier, according to an industry body.

Retail sugar prices have climbed about 13 per cent year-on-year to ₹52.30 a kg as on August 18, from ₹46.34 a year ago, as per consumer affairs ministry data.

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

To control prices, the government has also imposed a stockholding limit on bulk consumers who use more than 10 tonnes of sugar a month, capping their stock at 15 days' consumption.