Noida, Aug 21 (APAC Media): The Centre has allowed duty-free import of up to 10 lakh tonnes of raw sugar under the Tariff Rate Quota (TRQ) system until October 31 in a bid to improve domestic supplies and check a sharp rise in sugar prices ahead of the festive season.
The Directorate General of Foreign Trade (DGFT), in a notification issued on Thursday, amended the import policy for raw sugar and permitted 10 lakh metric tonnes to be imported at nil duty under the TRQ arrangement.
“The import policy for raw sugar is amended to allow 10 lakh MT (metric tonnes) of duty-free imports under TRQ until 31.10.2026,” the DGFT said in its notification.
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Sugar stocks came under pressure, with Dalmia Bharat Sugar & Industries emerging as the biggest loser, falling 5.47% to Rs 480.30. Dwarikesh Sugar Industries declined 4.32%, Balrampur Chini Mills 4.15% and Triveni Engineering & Industries 3.82%. Uttam Sugar Mills, EID Parry, Dhampur Sugar Mills and Avadh Sugar & Energy also fell between 1.53% and 3.07%.
The measure comes amid a sharp increase in domestic sugar prices, with supplies tightening ahead of the 2026-27 sugar season. Ex-mill prices in key markets have risen to record levels, according to market participants.
The government expects the imports to augment availability during the crucial period before domestic sugar production gathers pace. The 2026-27 sugar season begins on October 1, but production generally picks up in November.
Demand is also expected to strengthen during the festive period, with Ganesh Chaturthi and Janmashtami in September, followed by Navratri, Dussehra, Diwali and Chhath in October and November.
However, the government has not extended the duty-free facility to refined or white sugar. The latest decision is specifically limited to raw sugar.
The notification also provides a one-time option for eligible holders of advance authorisations to shift certain quantities to the TRQ scheme. Refined sugar produced from the imported raw sugar will have to be sold in the domestic market by October 31.
The move is expected to bring additional supplies into the market, although industry participants have pointed out that raw sugar imports will take time to arrive at Indian ports, undergo refining and reach consumers.
Market analyst said the decision could help ease price pressures. The duty-free imports, he said, would “moderate the inflationary expectations” in the sugar market.
The government has already taken several steps to prevent hoarding and improve availability, including restrictions on inventories held by bulk consumers and traders. The latest import measure aims to ensure adequate supplies during the high-demand months.
The All India Sugar Trade Association said the market had been influenced by “unjustified price expectations” and called for supply chains to remain free of bottlenecks.
India is traditionally a major sugar producer and exporter, making the decision to allow imports a significant intervention in the domestic market.
The government hopes the additional supplies will help stabilise prices before the new season’s production becomes available in larger quantities.
–ENDS–
Disclaimer: This article is for informational purposes only and is based on publicly available information. APAC Media is not responsible for investment decisions or losses. Please conduct your own research or consult a financial adviser before investing.
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