Centre permits duty-free raw sugar imports, curbs bulk stockholding to tame prices
New Delhi, August 20: The government on Thursday allowed duty-free imports of 10 lakh tonnes of raw sugar under a Tariff Rate Quota (TRQ) until October 31, 2026, and simultaneously imposed stockholding limits on bulk consumers, in a bid to enhance domestic availability and check rising prices.
The Directorate General of Foreign Trade (DGFT) said in a notification that the import policy for raw sugar has been amended to permit the duty-free imports under TRQ. The move comes against the backdrop of sugar prices hitting record levels, with the all-India average ex-mill price rising to ₹5,400-5,500 per quintal on Tuesday, up from ₹3,900 a year earlier, according to an industry body. Retail prices have also climbed about 13% year-on-year to ₹52.30 per kg as of August 18, from ₹46.34 a year ago, as per Consumer Affairs Ministry data.
Demand for sugar typically rises between August and November, coinciding with major festivals such as Ganesh Chaturthi, Dussehra, and Diwali. The government’s measures are aimed at ensuring adequate supply during this peak season.
Under the Sugar (Stockholding Limit of Bulk Consumers) Order, 2026, notified by the Food Ministry, bulk consumers using more than 10 tonnes of sugar a month will not be allowed to hold stock beyond 15 days’ consumption. The order, effective from September 1 to November 30, covers confectioners, soft drink manufacturers, food processing units, sweetmeat sellers, and other institutional buyers. A bulk consumer is defined as any such entity with an average monthly consumption of not less than 10 tonnes over the last year, excluding the current month. This follows an earlier order, effective August 1 to November 30, that capped stock with sugar dealers at 4,000 quintals for 30 days.
The tighter stockholding norm comes amid concerns over sugar availability for the 2026-27 season, which begins on October 1. Industry estimates put opening stocks for the new season at 40-42 lakh tonnes, while some researchers peg the figure lower at 32-35 lakh tonnes — both below the estimated domestic requirement of around 50 lakh tonnes.
The DGFT also issued modalities for the application and distribution of the TRQ. Applications are invited online from millers and refiners possessing their own functional capacity to convert raw sugar into white or refined sugar. The application window is from August 21 to August 28, 2026. Importers must submit a self-declaration of refining capacity along with supporting evidence, such as a copy of the Consent to Operate issued by the State Pollution Control Board.
Preference in allocation will be given to importers who undertake to complete the import by October 15, 2026. Failure to utilise or surrender the allocated quantity within the prescribed period shall constitute non-compliance, the DGFT said.
