New Delhi: The Centre has relaxed a key condition governing the duty-free import of 1 million tonnes of raw sugar, giving refiners additional time to process imported consignments and sell the refined product in the domestic market.
The Directorate General of Foreign Trade (DGFT) notified the change late Monday, allowing importers a two-month window from the date of filing the bill of entry to refine and sell the imported sugar. The move is expected to improve domestic availability during the initial months of the new sugar season and potentially ease pressure on retail prices.
Late-October Shipments Get More Time
Under the earlier arrangement, importers were required to refine and sell the imported raw sugar by October 31, even though shipments could arrive until that date.
The revised provision removes this tight deadline. While the October 31 deadline for sugar imports remains unchanged, refiners will now receive a rolling two-month period beginning from the date they file the bill of entry.
This means raw sugar arriving towards the end of October can be refined and sold during November and December, giving refiners greater flexibility to process shipments.
Industry representatives said the earlier deadline could have created logistical difficulties, particularly for consignments arriving close to the end of October.
Move Expected to Strengthen Early-Season Supplies
The relaxation comes ahead of the 2026-27 sugar season, which begins in October. Imported raw sugar will need to be refined into white sugar before it can reach consumers.
Industry experts believe the additional imports, combined with an early start to sugarcane crushing, could improve availability during the initial months of the new season.
The move is particularly significant as closing stocks for the 2025-26 sugar season are estimated at around 3.2–3.5 million tonnes, reportedly the lowest level in nearly two decades.
Centre Allowed Raw Sugar Imports After Price Rise
The government permitted duty-free imports of raw sugar on August 20, marking its first such move in nearly a decade.
The decision came after a sharp increase in retail sugar prices, which had climbed to around Rs 70 per kg in some major metropolitan markets.
The Centre said the imports were intended to further increase domestic availability ahead of the festive season.
However, the imported sugar will not immediately enter retail markets because the consignments consist of raw sugar that must first undergo refining.
Sugar Production Estimate Cut
The import relaxation also comes against the backdrop of lower domestic sugar production.
The government’s latest estimate puts 2025-26 sugar production at around 30.6 million tonnes, significantly below the initial estimate of approximately 34.3 million tonnes.
Crop damage caused by factors including Red Rot, Top Borer disease and waterlogging has contributed to the decline in production.
Mills Asked to Begin Crushing Earlier
To improve early-season availability, the government has also asked sugar mills and state authorities to begin crushing operations for the new season from October 15.
The Centre expects the earlier start to help push October sugar production above 1 million tonnes, compared with the usual production of around 300,000–400,000 tonnes during the month.
The combined impact of early crushing and duty-free raw sugar imports is expected to provide additional supplies during the crucial opening months of the season.
Government Says Supplies Remain Comfortable
Despite the import decision and concerns over lower production, both the government and the sugar industry have maintained that India has comfortable sugar supplies and is not facing an outright shortage.
The latest relaxation is primarily aimed at ensuring that imported raw sugar can be processed and brought into the domestic market without unnecessary delays, particularly for shipments arriving towards the end of October.
With the festive season approaching, authorities are closely watching sugar availability and retail prices, while the industry expects the additional supplies to help prevent further pressure on consumers.
