Source Reuter
NEW DELHI — In a major move aimed at curbing soaring sweetener prices and shoring up domestic supply ahead of the festive season, the Indian government on Thursday permitted duty-free imports of 1 million metric tonnes (10 lakh tonnes) of raw sugar under the Tariff Rate Quota (TRQ) system. The import window will remain open until October 31, 2026.
This marks the country’s first sugar imports in nearly a decade, reflecting mounting pressure on domestic supplies following a dip in sugarcane yields.
Key Drivers Behind the Move
Price Spikes: Domestic sugar prices have surged by nearly 40% over the last two months. All-India average ex-mill rates hovered between ₹5,400 and ₹5,500 per quintal, up sharply from around ₹3,900 a year ago.
Impending Festive Demand: Demand for sugar traditionally peaks between August and November during major festivals such as Ganesh Chaturthi, Dussehra, and Diwali.
Duty Relief: Sugar imports into India typically carry a 100% basic customs duty; the TRQ exemption effectively eliminates this barrier to fast-track incoming shipments.
Parallel Stock Controls
Alongside opening import channels, the Directorate General of Foreign Trade (DGFT) and the Ministry of Consumer Affairs have rolled out measures to prevent hoarding:
Bulk Consumers: Commercial entities using more than 10 metric tonnes of sugar monthly face strict inventory caps limited to 15 days of consumption from September 1 to November 30.
Wholesale Dealers: Trader stockpiles remain capped at 30 days of standard supply to prevent supply bottlenecks in retail channels.
Industry experts anticipate that while the arrival of raw sugar will cool local market pressures, the entry of the world’s largest sugar consumer into the global import market could lend support to international benchmark sugar prices in London and New York.
