NEW DELHI: The government has allowed duty-free import of one million tonnes of raw sugar as domestic sugar prices hit a 16-year high. The processed sugar from the imported raw sugar must be supplied to the domestic market by October 31, 2026.
The decision has raised questions over the government’s sugar policy, particularly as India has already exported 8,00,000 tonnes of sugar to the international market this year.
A Gazette notification issued by the Directorate General of Foreign Trade (DGFT), approved by the Commerce and Industry Minister, said the one million tonnes could be imported duty-free under the Tariff Rate Quota until October 31, 2026.
The government also announced a series of measures on Thursday to check the sharp rise in sugar prices.
The Department of Food and Public Distribution (DFPD) imposed a monthly stock limit of 10 metric tonnes on bulk consumers who use sugar as a raw material for production and consumption. Such consumers cannot hold sugar stocks for more than 15 days.
Bulk consumers include confectioners, soft drink manufacturers and food processing industries. The restrictions, however, will not apply to institutions owned by the Central Government, state governments, Union Territory administrations or local bodies.
The DFPD has also sought detailed information from sugar mills and buyers to address concerns over availability and prevent hoarding. Sugar mills have been directed to submit records of their sales and transactions for August 17, 18 and 19, 2026, separately for each day.
In a letter to all sugar mill owners and management, the department said the records must include the quantity sold and the rate for every transaction. Where multiple sales were made on the same day at different rates or to different buyers, each transaction must be reported separately.
For every buyer, mills must provide the name, complete address, telephone or mobile number and GST number. Quantities must be reported in quintals and rates in rupees per quintal. The information must be complete, accurate and verified by the respective sugar mill.
The details had to be submitted through the designated official email by 12 noon on August 20. The DFPD termed the matter “most urgent” and said delays or failure to comply would be taken seriously.
Sugar prices have risen rapidly in recent weeks amid concerns over record-low stocks at the end of the sugar season and expectations of higher demand during the upcoming festive season. Since August 7, retail sugar prices have risen by more than 20% across major cities.