- India permits 10 lakh tonnes of duty-free raw sugar imports.
- Stockholding limits imposed on bulk sugar consumers.
- Measures aim to stabilise rising domestic sweetener prices.
The government has allowed duty-free imports of 10 lakh tonnes of raw sugar under a tariff rate quota till October 31, considering the spike in sweetener prices in the domestic retail market. Additionally, a stockholding limit has been imposed on bulk consumers who use more than 10 tonnes of sugar a month, capping their stock at 15 days' consumption. The government move aimed at capping prices and enhancing domestic availability.
"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 Directorate General of Foreign Trade said in a notification.
The measures are announced amid a sharp rise in sugar prices due to low open stocks ahead of the 2026-27 season. According to data from an industry body, the average ex-mill price across India rose to Rs 5,400-5,500 per quintal on, earlier this week, from Rs 3,900 a year ago.
Data from the Consumer Affairs Ministry showed that retail sugar prices rose nearly 13 per cent year-on-year to Rs 52.30 per kg as of August 18, compared to Rs 46.34 a year ago.
Sugar demand typically increases in the festive season– between August and November– as major festivals like Ganesh Chaturthi, Dussehra, and Diwali fall in this period.
What Food Minister Says
Weighing in on the measure announced, Food Minister Pralhad Joshi, in a social media post, asked bulk consumers–wholesalers or stockists– who trade or use more than 10 tonnes of sugar in a month not to hold stock beyond 15 days of consumption.
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“They will not be allowed to hold stock beyond what they will consume in 15 days,” Joshi emphasised.
The Food Ministry has notified the Sugar (Stockholding Limit for Bulk Consumers) Order, 2026, which covers confectioneries, soft drink manufacturers, food processing units, sweet meat sellers and other institutional buyers.
"The proactive step taken by the government will immediately dispel speculation & ensure adequate supply to consumers at reasonable and stable prices over the coming year," the food ministry said in a post on X.
Key Points
The order is to come into effect from September 1 till November 30.
Earlier, a notice was issued to cap stock with sugar dealers at 4,000 quintals for 30 days, effective August 1 to November 30.
The curbs have been announced to check rising sugar prices, with ex-mill rates hitting record levels.
The average all-India ex-mill price climbed to Rs 5,400-5,500 per quintal on Tuesday this week, up from Rs 3,900 a year earlier.
Who are Bulk Consumers?
A bulk customer refers to a sweet shop owner or any other institutional buyer whose average monthly consumption in the previous year, excluding this month, was at least 10 tonnes.
The stricter stockholding rules have been announced amid concerns about sugar availability for the 2026-27 season, which begins on October 1. Industry estimates put the opening stock for the new season at 4.0-4.2 million tonnes, while some researchers put it lower at 3.2-3.5 million tonnes – both falling short of the estimated domestic requirement of around 5 million tonnes.
Meanwhile, the DGFT also released the TRQ application and distribution process for the import of 1 million tonnes of raw sugar and a one-time transition from the Advance Authorisation (AA) scheme to the Tariff Rate Quota (TRQ) scheme.
"Applications for TRQ are invited online from millers and refiners possessing their own functional capacity to convert raw sugar into white/refined sugar. The Application window is from August 21, 2026, till August 28, 2026," it said.
With Inputs From PTI