The Indian government has opened the door to duty-free imports of up to 1 million metric tonnes of raw sugar until 31 October 2026, in a move aimed at increasing domestic supplies and containing rising sugar prices ahead of India’s major festive season.
The decision is significant because domestic sugar prices have risen sharply — nearly 40% in about two months, according to Reuters — amid concerns over reduced production and tight supplies. India normally imposes a 100% import duty on sugar, making this a major policy intervention.
The government is allowing the imports through a Tariff Rate Quota (TRQ). Eligible mills and refiners can apply for the quota between 21 and 28 August, with preference for companies committing to bring shipments into the country by 15 October.
The move is expected to provide additional supplies before the period when sugar consumption traditionally rises because of festivals. Reuters reports that port-based refineries could initially make around 300,000 tonnes available to the domestic market, although larger imports could take longer to arrive because of shipping times.
The decision has also affected the stock market: shares of several Indian sugar companies fell as investors anticipated greater competition from imported sugar and potentially lower domestic prices.
