The Indian government has allowed duty-free imports of 10 lakh tonnes of raw sugar under a Tariff Rate Quota (TRQ) until October 31, 2026, in an effort to boost domestic availability and curb rising prices. This decision comes amid a sharp increase in sugar prices, with ex-mill rates reaching record levels due to 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.
To control prices, the government also imposed a stockholding limit on bulk consumers using more than 10 tonnes of sugar a month. Food Minister Pralhad Joshi announced that bulk consumers will not be allowed to hold stock beyond 15 days’ consumption. 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.
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. The Directorate General of Foreign Trade (DGFT) has 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.
