Duty-Free Sugar Import Deadline Pushed to December 31, 2026
The government has pushed back the deadline for duty-free import of 10 lakh tonnes of raw sugar under the Tariff Rate Quota by two months, to December 31. The step is intended to guarantee enough supply at reasonable rates through the festive season.
The Finance Ministry's original permission, granted on August 20, allowed these imports until October 31. A new notification has now moved the final date for duty-free imports to December 31, 2026.
Around 26 lakh tonnes of raw sugar have been imported to date. The pace of imports has been modest, as domestic sugar prices fell after the government signalled that additional imports would be allowed.
The extension is meant to act as a buffer should domestic prices move up, and it is also expected to help hold down import prices.
Alongside import permissions, the government has introduced other measures to keep domestic supply comfortable and prevent steep price rises. One of these is a cap on the stock that traders can keep.
For the 2025-26 marketing year, which covers October to September, sugar production is now pegged at 306 lakh tonnes, down from the earlier estimate of 343 lakh tonnes. Domestic annual demand is expected to be around 280 to 285 lakh tonnes.
Earlier this month, the government formed a high-level committee to examine concerns raised by sugarcane farmers and recommend suitable solutions.
The committee will consider the demand for an increased remunerative price for cane farmers, taking into account the cost of cultivation and other relevant factors. It will also examine requests to revise the ex-mill minimum selling price of sugar, in light of production costs, market rates and the financial viability of sugar mills.
Additional areas for review include the current system for testing and reporting sugar recovery, measures to ensure transparent verification of recovery, and cane weighing practices at mills. The adequacy of calibration, inspection and verification mechanisms will also be assessed.