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.
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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.
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.
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.
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.
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.