Centre Focuses on Sugar Prices Ahead of Festive Season

The Centre has allowed duty free import of 1 million metric tonnes of raw sugar under the Tariff Rate Quota (TRQ) system amid a sharp rise in domestic sugar prices. The permission will remain valid until October 31, 2026. The Directorate General of Foreign Trade (DGFT) has amended the import policy, allowing only raw sugar to be imported under the special quota without the existing 100% import duty.

Domestic sugar prices have risen sharply, with the average retail price reaching Rs.52.30 per kg on August 18, compared with Rs.46.34 a year ago. The government has also restricted bulk consumers such as confectionery makers, soft drink companies and food processors from holding more than 15 days of sugar stock between September 1 and November 30. The move aims to prevent hoarding, speculative purchases and artificial shortages during the festive season.

Eligible sugar mills and refineries can apply for the import quota between August 21 and 28. Preference will be given to companies with refining capacity and those able to complete imports by October 15. The additional supply is expected to ease price pressure, although imports may take time to reach the domestic market due to shipping timelines. Industry body ISMA has maintained that there is no shortage of sugar in the country and that existing stocks can meet domestic demand until the new season begins.