Centre Extends Duty-Free Raw Sugar Import Window Till December 31 To Bolster Festive Supplies
The Indian government has extended the deadline for duty-free import of 10 lakh metric tonnes of raw sugar under the Tariff Rate Quota from October 31 to December 31, 2026. The two-month extension notified by the DGFT aims to secure domestic supplies and stabilize prices during the festive season, granting refiners extra time to execute pending import shipments.
The Central Government has extended the deadline for duty-free raw sugar imports by two months until December 31, 2026, granting importers and refiners additional time to bring in overseas shipments to meet surging domestic demand during the festive season. The Directorate General of Foreign Trade (DGFT) notified the amendment under the Tariff Rate Quota (TRQ), which covers a total allocated volume of 10 lakh metric tonnes (one million tonnes) of raw sugar.
The decision comes ahead of peak festive demand encompassing Diwali and Chhath Puja, when sugar consumption experiences an annual spike across household confectionery, retail, and commercial food processing segments. By stretching the window past the earlier October 31 cut-off, authorities aim to prevent supply shortages in the domestic market, keep retail prices stable, and provide operational leeway for importers negotiating international trade deliveries. Sugar Price Hike: Govt Allows Duty-Free Import of 10 Lakh Tonnes, Imposes Stock Limits.
Notification Extends Tariff Rate Quota Timeline
Under Notification No. 45/2026-27 issued by the DGFT under the Ministry of Commerce and Industry, the import policy condition for raw sugar classified under Exim Code 170114 remains categorized as "Free," subject to the TRQ quota conditions. The revision amends the previous timeline established in August without altering the overall quantitative ceiling.
"The timeline specified in the existing import policy condition for import of raw sugar under the TRQ is hereby extended up to 31.12.2026. All other conditions specified in the Notification No. 31/2025-26 dated 20.08.2026 shall remain unchanged," the directorate confirmed in its statutory order.
Subdued Inflows and International Price Parity
The government initially opened the 10-lakh-tonne duty-free import window in late August to augment domestic availability. However, trade inflows have progressed slower than anticipated, with market estimates indicating that only around 2.6 lakh tonnes had been imported by mid-October.
Trade analysts attribute the sluggish pace to international price volatility and a temporary lack of price parity between landed import costs and domestic wholesale benchmarks. The two-month relaxation offers refiners strategic flexibility to contract overseas consignments from major global suppliers as soon as global freight rates and raw sugar indices soften.
Domestic Production Estimates and Market Interventions
The import extension complements a broader package of regulatory measures implemented by the Ministry of Consumer Affairs, Food and Public Distribution to monitor domestic inventory. Authorities have maintained strict stockholding limits on wholesale traders and retail chains to curb speculative hoarding and ensure consistent regional supply.
For the 2025–26 sugar marketing year (October–September), India's total domestic sugar output is estimated at approximately 306 lakh tonnes, compared against an annual national consumption requirement pegged between 280 and 285 lakh tonnes. While domestic production remains sufficient to cover aggregate annual demand, the duty-free buffer ensures coastal port-based refiners can maintain steady processing schedules and support northern and western distribution corridors without straining regional mill reserves.
(The above story first appeared on LatestLY on Oct 23, 2026 11:00 AM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).