New Delhi: India has allowed duty-free imports of up to 1 million tonnes of raw sugar until 31 October, marking its first significant sugar import, as the government moves to cool soaring domestic prices ahead of the festive season.
The “proactive step” will immediately dispel speculation and ensure adequate supply to consumers at reasonable and stable prices over the coming year, the department of food and public distribution said in a post on social media platform X. India currently imposes a duty of 100% on raw sugar imports.
The move comes amid a sharp rise in sugar prices in recent weeks. The average retail price of sugar rose 13% month-on-month to ₹54.06 per kg on 19 August from ₹47.82 per kg, according to consumer affairs ministry data.
Also, the move comes ahead of the August-November festive period, when demand for sugar typically rises. The government has also tightened stockholding limits for bulk consumers to improve market availability.
A day earlier, the Centre tightened sugar stockholding norms as prices jumped and availability and concerns intensified ahead of the festive season, when demand typically increases. The government has now reduced the permissible stockholding period for bulk sugar consumers to 15 days from 30 days, effective 1 September to 30 November.
"No bulk consumer using or consuming more than ten metric tons of sugar per month as raw material for production, consumption or use, in any manner shall keep in stock sugar for any period exceeding fifteen days for such consumption," said the notification.
A bulk consumer refers to a confectioner, soft drink manufacturer, food processing company, sweetmeat seller or any other institutional buyer that consumes at least 10 tonnes of sugar per month, based on its average monthly consumption over the past year, excluding the current month. The move follows the government’s decision in July to impose curbs on sugar stockholding.
On 28 July, Mint reported that the Centre had imposed stockholding limits on sugar dealers from 1 August to 30 November to curb hoarding and speculative trading ahead of the festive season. Under the earlier order, dealers were prohibited from holding sugar stocks for more than 30 days, while their inventories were capped at 4,000 quintals (40 tonnes), according to a gazette notification.
Also, on 13 May, India banned exports of raw, white and refined sugar till 30 September, marking a sharp shift from the earlier “restricted” export regime to a “prohibited” category. However, the government has exempted exports to the US and the European Union under existing quota arrangements.
The steps were taken as the government feared that sugar availability may not be enough to comfortably meet local demand, especially as consumption remains high and weather uncertainties persist.
According to government assessments, the increase in ex-mill prices has not been fully supported by demand-supply fundamentals. The food ministry has flagged hoarding, speculative transactions and paper trading without physical movement of sugar as factors contributing to an artificial perception of scarcity and price volatility.
The sugar production in the 2025-26 sugar season was around 28 million tonnes. The government has assured that adequate quantities of sugar are available in the country to meet domestic consumption requirements. India’s domestic sugar consumption is estimated at around 28-28.5 million tonnes annually. According to estimates, institutional consumption such as food and beverage companies, hotels, restaurants and catering sector and processed foods accounts for 60–65% of total demand, with the remaining share coming from retail households.
With the new season still some weeks away, authorities are likely to closely monitor prices, stocks and demand.
Vijay C. Roy is a journalist with over 21 years of experience covering various news beats across different organisations such as Business Standard and The Tribune. In the past, he has covered beats such as finance, auto, MSME, commodities, FMCG, pharmaceutical, agriculture, IT/ITES, infrastructure and start-ups. He joined Mint in February 2025, and covers agriculture, food processing, fertilizers, environment and climate change, bringing over two decades of experience reporting on farm policy, food inflation, crop trade, and rural livelihoods.<br><br>Vijay’s areas of reporting include food security and climate change policies, focusing on their impact on different stakeholders and their implications. His expertise lies in simplifying complex agri-economic issues such as edible oil import dependence, cotton and wheat trends, fertiliser subsidies, and climate-related risks. He has covered key developments including global supply disruptions and evolving trade policies, offering both macroeconomic perspective and field-level context. Known for his credible and balanced reporting, he follows a rigorous, fact-based approach that prioritises accuracy and context. He is driven by a commitment to public interest, aiming to make critical agricultural and economic issues accessible while contributing to informed policy and industry discussions.
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