Government allows duty-free import of 10 lakh tonnes of raw sugar until October 31

Administration allows duty-free import of 10 lakh tonnes of raw sugar until October 31 To control costs, the administration imposed a stockholding limit on bulk consumers using more than 10 tonnes of sugar a month.

Key points

• The Food Ministry has notified the Sugar (Stockholding Limit of Bulk Consumers) Order, 2026.
• The tighter stockholding norm comes against the backdrop of worries over sugar availability for the 2026-27 season.
• As the country celebrates major festivals such as Ganesh Chaturthi, Dussehra, and Diwali, demand for sugar typically rises between August and November.
• To control rates, the administration additionally imposed a stockholding limit on bulk consumers using more than 10 tonnes of sugar a month.
• Applications for TRQ are invited online from millers and refiners possessing their own functional capacity to convert raw sugar into white/refined sugar.

Meanwhile, the order comes against the backdrop of a sharp rise in sugar rates, with ex-mill rates hitting record levels due to a lower opening stock ahead of the 2026-27 season. Representational file image. Photo Credit: M. Govarthan.

In practice, the administration 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 against the backdrop of rising rates of the sweetener in local markets. The move is aimed at enhancing domestic availability and capping cost rises.

To control rates, the administration additionally 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) remarked in a notification.

Food Minister Pralhad Joshi confirmed 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.

Notably, the Food Ministry has notified the Sugar (Stockholding Limit of Bulk Consumers) Order, 2026. It 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.

Notably, 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.

Meanwhile, the tighter stockholding norm comes against the backdrop of worries over sugar availability for the 2026-27 season. It begins on October 1. While some researchers peg the figure lower, at 32-35 lakh tonnes – both below the estimated domestic requirement of around 50 lakh tonnes, industry estimates put opening stocks for the new season at 40-42 lakh tonnes.

Meanwhile, the DGFT additionally 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 remarked.

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 remarked, adding that failure to utilise or surrender the allocated quantity within the prescribed period shall constitute non-compliance.

In short, government allows duty-free import of 10 lakh tonnes of raw sugar until is the central thread here, and readers can expect follow-up reporting as the picture becomes clearer.