The government of India has allowed the duty-free import of 10 lakh metric tons of raw sugar under the Tariff Rate Quota system, in a move aimed at easing rising domestic prices ahead of the festive season.
The Directorate General of Foreign Trade said the zero-duty import policy will remain in force until October 31, 2026. This is the first sugar import in nearly a decade.
The decision comes as sugar prices have surged sharply due to tighter domestic supplies, lower sugarcane production and increased diversion of cane towards ethanol production, reports said. With demand typically rising between August and November, the government is seeking to prevent further price spikes during the festival period that comprises Ganesh Chaturthi, Dussehra, and Diwali.
Prices climbed nearly 40% over the last two months, with ex-mill rates hitting record highs of ₹5,400–5,500 per quintal.
Alongside the import decision, authorities have imposed stricter stock limits on dealers and large institutional consumers to curb hoarding and speculation. Exports also remain restricted until 30 September. Starting 1 September, institutional buyers such as sweetmeat sellers, soft drink makers, and confectioners utilizing over 10 tons monthly cannot hold stock exceeding 15 days of consumption.
The announcement triggered a decline in shares of several domestic sugar companies, while global sugar prices rose on expectations of increased demand from India.
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Naresh Khanna – 10 February 2025
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