In view of the continuous sharp increase in sugar prices in India, the Central Government has taken a big decision. The government has opened the way for import of raw sugar for the first time after almost a decade. Under this, a maximum of 10 lakh metric tonnes of raw sugar can be imported without custom duty till 31 October 2026. This step of the government has come at a time when the pressure on sugar supply in the country is increasing and domestic sugar prices have increased by about 40% in the last two months. This rise in prices before the beginning of the festive season has increased the concern of the government and common consumers.
Directorate General of Foreign Trade i.e. DGFT on Thursday changed the sugar import policy and allowed import of raw sugar under Tariff Rate Quota i.e. TRQ. TRQ is a system in which a certain quantity of goods is allowed to be imported at low or zero custom duty. This time the government has fixed its limit at 10 lakh tonnes and this facility will be available till 31 October 2026.
This permission will specifically apply to raw sugar falling under Exim Code 170114. The aim of the government is to increase the availability of sugar in the domestic market and control rising prices. India is among the largest sugar consuming countries in the world, so the rise in domestic prices can have a direct impact on crores of consumers.
Chance till 31st October
The government has also made special provision for those companies which have advance authorization under SION E-52. Such companies have been given a one-time opportunity to convert already imported raw sugar to the new TRQ system. With this, the refined sugar that has been prepared or will be prepared in future can also be included in this system. However, for this, companies will have to pay the amount of GST exemption received at the time of import. Also, under this scheme, it will be necessary to sell refined sugar prepared from imported raw sugar in the domestic market by October 31. DGFT will later release detailed information related to the allocation of this quota and the process of converting old imports into the new system.
What steps did the government take first?
The government has already taken several steps to control sugar prices. Stock holding limits have been imposed on sugar traders from August 1 to November 30. Its objective is to stop hoarding and speculation and maintain adequate supply in the market. The government says that the recent increase in the prices of sugar coming out of the mills is not justified according to the current demand and supply situation. The government has also assured that there is sufficient sugar stock in the country to meet the domestic requirement. In such a situation, permission to import 10 lakh tonnes of duty-free raw sugar is being considered an important step towards increasing the supply in the market and providing relief to consumers from expensive sugar during the festive season.
