Business
oi-Swastika Sruti
The Centre has taken steps to increase sugar availability and control rising prices by allowing duty-free imports of 10 lakh tonnes of raw sugar under the Tariff Rate Quota (TRQ) system.
The Centre will permit duty-free imports of 10 lakh tonnes of raw sugar under the TRQ system until October 31, 2026, to increase availability and control rising prices, while also imposing stock limits on large consumers from September 1 to November 30.
The permission will remain valid until October 31, 2026, as the government seeks to ensure adequate supplies ahead of the new sugar season and the festive period.
At the same time, the government has introduced a stock limit for large sugar consumers to prevent excessive stocking and possible supply pressure in the domestic market.
Duty-Free Sugar Imports Allowed Till October 31
According to the DGFT, the policy on raw sugar imports has been revised such that 10 lakh MT of duty-free imports can be undertaken under the TRQ scheme.
The idea behind the policy is to make it easier to supply the country and control price hikes.
As per the policy, the sugar millers or refiners having capacity to refine the raw sugar into refined sugar are eligible to apply for the TRQ.
The application period online will last from August 21 to 28, 2026.
The applicant will have to provide self-declaration of his/her refining capacity supported by consent to operate issued by the State Pollution Control Board.
Sugar Prices Have Increased Sharply
The government’s decision comes as sugar prices have risen significantly over the past year.
According to industry data, the average all-India ex-mill price of sugar reached around ₹5,400-₹5,500 per quintal on Tuesday, compared with approximately ₹3,900 a year earlier.
Retail prices have also moved higher. Consumer Affairs Ministry data showed that the average retail price was around ₹52.30 per kg on August 18, compared with ₹46.34 per kg during the same period last year.
Why Sugar Supply Is A Concern
Generally, sugar consumption tends to increase during the months of August to November due to festive season in India.
The sugar season for 2026-27 is expected to start from October 1. As per industry projections, the opening stocks can be somewhere near 40-42 lakh tonnes and even as low as 32-35 lakh tonnes.
It should be compared with domestic requirements of about 50 lakh tonnes.
This makes the situation more serious regarding availability of sugar at the beginning of the new sugar season.
The government expects that imports may help fill the gap in sugar supply.
Bulk Sugar Consumers Face New Stock Limit
Along with imports, the government has also introduced restrictions on how much sugar large institutional consumers can keep in stock.
Food Minister Pralhad Joshi announced that consumers using more than 10 tonnes of sugar a month will not be permitted to hold stocks exceeding their estimated 15 days’ consumption.
The Sugar (Stockholding Limit of Bulk Consumers) Order, 2026, will come into effect from September 1 and remain applicable until November 30.
The rule covers businesses such as confectioners, soft drink manufacturers, food processing companies, sweet manufacturers and other institutional buyers.
A bulk consumer is defined as an institutional buyer whose average monthly sugar consumption has been at least 10 tonnes over the previous year, excluding the current month.
Earlier Stock Limits Also In Place
The latest restriction follows an earlier government order that came into effect on August 1. That order capped the stock that sugar dealers could hold at 4,000 quintals for 30 days and will remain applicable until November 30.
The government has introduced these measures amid concerns that lower opening stocks could put additional pressure on sugar prices.
Government Seeks Faster Imports
The DGFT has also laid down conditions for distributing the 10 lakh-tonne import quota.
Preference will be given to importers who commit to completing their imports by October 15, 2026.
Importers who fail to use their allocated quantity or surrender it within the prescribed period could face action for non-compliance.
The government is therefore trying to ensure that the imported sugar reaches the domestic market quickly, particularly before demand rises during the festive season.
