The government on Thursday (August 20, 2026) allowed duty-free imports of 10 lakh tonnes of raw sugar under a Tariff Rate Quota (TRQ) till October 31 amid rising prices of the sweetener in local markets. The move is aimed at enhancing domestic availability and capping price rises.

To control prices, the government also imposed a stockholding limit on bulk consumers using more than 10 tonnes of sugar a month. “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 (DGFT) said in a notification.

The order comes against the backdrop of a sharp rise in sugar prices, with ex-mill rates hitting record levels due to a lower opening stock ahead of the 2026-27 season. The all-India average ex-mill price rose to ₹5,400-5,500 per quintal on Tuesday, up from ₹3,900 a year earlier, according to an industry body. Retail sugar prices climbed about 13% year-on-year to ₹52.30 per kg (as of August 18) from ₹46.34 a year ago, according to Consumer Affairs Ministry data.

Demand for sugar typically rises between August and November, as the country celebrates major festivals such as Ganesh Chaturthi, Dussehra, and Diwali.

Stockholding limits

Food Minister Pralhad Joshi announced in a social media post that bulk consumers using more than 10 tonnes of sugar a month will not be allowed to hold stock beyond 15 days’ consumption.

The Food Ministry has notified the Sugar (Stockholding Limit of Bulk Consumers) Order, 2026, which covers confectioners, soft drink manufacturers, food processing units, sweetmeat sellers and other institutional buyers. The order will come into force from September 1 and remain in effect till November 30. This follows an earlier order, effective August 1 to November 30, that capped stock with sugar dealers at 4,000 quintals for 30 days.

A bulk consumer has been defined as a confectioner, soft drink manufacturer, food processing unit, sweetmeat seller or any other institutional buyer with an average monthly consumption of not less than 10 tonnes over the last year, excluding the current month.

The tighter stockholding norm comes amid concerns over sugar availability for the 2026-27 season, which begins on October 1. Industry estimates put opening stocks for the new season at 40-42 lakh tonnes, while some researchers peg the figure lower, at 32-35 lakh tonnes — both below the estimated domestic requirement of around 50 lakh tonnes.

Application process

Meanwhile, the DGFT also issued modalities for the application and distribution of TRQ for the import of 10 lakh MT of raw sugar and one-time conversion from the Advance Authorisation (AA) Scheme to the 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.

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In the application, importers have to submit a self-declaration of refining capacity, along with supporting evidence in the form of a copy of the Consent to Operate issued by the State Pollution Control Board.

“Preference in allocation shall be given to the importers who give an undertaking to complete such import by 15th October 2026,” it said, adding that failure to utilise or surrender the allocated quantity within the prescribed period shall constitute non-compliance.

Published - August 21, 2026 03:20 am IST