The government has allowed the duty-free import of up to 10 lakh metric tonnes (MT) of raw sugar under the Tariff Rate Quota (TRQ) scheme until October 31, 2026, in a move aimed at increasing domestic supplies and controlling rising prices.
The Directorate General of Foreign Trade (DGFT) announced the decision on Thursday as sugar prices continued to climb in domestic markets.
“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 DGFT said in a notification.
Sugar Prices Hit Record Levels
The decision comes as sugar prices have risen sharply because of concerns over supplies ahead of the 2026-27 sugar season.
According to industry data, the average ex-mill sugar price across India reached around ₹5,400-5,500 per quintal, compared with about ₹3,900 a year earlier.
Retail prices have also increased. Consumer Affairs Ministry data showed that the average retail price of sugar stood at around ₹52.30 per kg on August 18, up from ₹46.34 per kg a year earlier.
Sugar demand usually increases between August and November as consumers and businesses prepare for major festivals including Ganesh Chaturthi, Dussehra and Diwali.
Bulk Consumers Face New Stock Limits
Alongside the import decision, the government has introduced tighter stockholding rules for large sugar consumers.
Food Minister Pralhad Joshi said bulk consumers using more than 10 tonnes of sugar a month will not be allowed to keep stocks exceeding 15 days of their consumption.
The Sugar (Stockholding Limit of Bulk Consumers) Order, 2026, will come into effect on September 1 and remain in force until November 30.
The rules cover confectionery manufacturers, soft drink companies, food processing units, sweet shops and other institutional buyers.
A bulk consumer is defined as an entity with an average monthly sugar consumption of at least 10 tonnes over the previous year.
The government had earlier restricted sugar dealers to holding stocks equivalent to 30 days of their requirements.
Concerns Over Sugar Supplies
The measures come ahead of the 2026-27 sugar season, which begins on October 1.
Industry estimates suggest opening stocks could be around 40-42 lakh tonnes, while some researchers estimate them to be as low as 32-35 lakh tonnes. Domestic sugar consumption is estimated at around 50 lakh tonnes during the relevant period.
The government is therefore seeking to increase availability before demand rises further during the festival season.
Import Applications Open From August 21
The DGFT has also issued guidelines for distributing the 10 lakh MT import quota.
Applications will be accepted online from August 21 to August 28, 2026, from sugar mills and refiners that have their own operational facilities to convert raw sugar into refined or white sugar.
Applicants will have to provide details of their refining capacity and submit supporting documents, including a Consent to Operate issued by the relevant State Pollution Control Board.
Preference will be given to importers who undertake to complete their imports by October 15, 2026.
