India approves duty-free sugar imports to control soaring domestic prices

The Indian government has approved duty-free import of 10 lakh metric tonnes of raw sugar under the Tariff Rate Quota (TRQ) scheme in a major policy shift aimed at controlling soaring domestic sugar prices and ensuring adequate supplies ahead of the festive season. The Directorate General of Foreign Trade (DGFT) announced the measure on Friday, and the exemption will remain valid until 31 October 2026. Normally, raw sugar attracts a 100 percent import duty, but imports under this special quota will be completely duty-free.

The decision comes as sugar prices have surged to record levels in recent weeks. According to an industry body, the all-India average ex-mill price has climbed to Rs 5,400-5,500 per quintal, compared to around Rs 3,900 a year ago. Data from the Ministry of Consumer Affairs shows that retail prices have also risen by approximately 13 percent, reaching Rs 52.30 per kilogram on 18 August. The government's primary objective is to stabilize prices and ensure sufficient availability in the domestic market, particularly during the festive season from August to November when demand typically spikes ahead of Ganesh Chaturthi, Dussehra, and Diwali.

Alongside the import relaxation, the government has imposed stock holding limits on bulk consumers. Entities consuming more than 10 tonnes per month, including confectioners, soft drink manufacturers, food processing units, and sweet sellers, will not be allowed to hold stocks exceeding 15 days of consumption. This order takes effect from 1 September and will remain in force until 30 November 2026. Stock limits for traders have already been imposed earlier.

The DGFT has released the application process for TRQ allocation and one-time conversion from the Advance Authorisation Scheme to TRQ. Online applications will be accepted from 21 to 28 August 2026, with only millers and refiners possessing functional capacity to convert raw sugar into white or refined sugar eligible to apply. This move opens the door to large-scale raw sugar imports after nearly a decade and is expected to curb speculation while ensuring consumers have access to sugar at reasonable prices during the festive period.