Government Allows Duty Free Import of Raw Sugar First Time In a Decade; Sugar Stocks Fall

The government has allowed imports  of raw sugar under the tarrif rate quota of 10 lakh tonne for the first time in a decade, the Directorate General of Foreign Trade said Thursday. It has also scrapped 100% import duty on raw sugar.
The import window will remain open until October 31, just ahead of the peak festive season when sugar demand typically rises.

"The import policy for raw sugar is amended to allow 10 Lakh MT (metric tonnes) of duty-free imports under TRQ (tariff rate quota) till 31.10.2026," the department said in a notification. Government has also imposed stock holding limit orders for bulk consumers and stockists. This move has been taken to keep sugar prices reasonable for consumers.

This move is expected to improve the availability of sweetener in the country and cool down prices. Ex-mill prices of sugar has increased significantly by around 20-25% since July to Rs 5,500-Rs 6,000 per 100 kg, according to traders. 
Sugar prices in the international market have increased, factoring in India’s import decision. On Thursday, the October London ICE white sugar closed up 10.00 at 552.20. 

Prices started peaking in July when there was anticipation of lower sugar availability and have been increasing ever since. Hopes of increase in demand during the upcoming festivals such as Navratri in October, Diwali and Chhath Puja in November has kept prices elevated, according to Naresh Gupta, a trader from Uttar Pradesh.

If the sales quota for sugar is lower or equal to August prices will remain elevated, Mukesh Kuvadia, a trader from Maharashtra said. In August the monthly sugar sales quota set by the government was 22.5 lakh tonnes. 

Sugar production in the current sugar season ending September is expected to be around 320 lakh tonnes, according to the Indian Sugar & Bio-energy Manufacturers Association data in April. Sugar season runs from October to September, and gross sugar output is estimated before the diversion of sucrose or sugar for ethanol production. 

The association, however, has deferred its production forecast for the 2026-27 sugar season, citing uncertainty over the progress of the southwest monsoon. It plans to release its preliminary production estimate in the first week of September after assessing rainfall during July and August.

Meanwhile, sugar stocks plummeted between 3% and 7% on August 21, 2026, after the government allowed duty-free imports. Dwarikesh Sugar Industries fell up to 7.2%, Dalmia Bharat Suga, fell 5.5% to 6.4%, Balrampur Chini Mills dropped over 4% to 5% and Triveni Engineering & Industries declined about 3.8%