The government has amended the order relating to the import of 1 million tonnes of raw sugar, revising the timeline for its import and processing under the TRQ scheme. The amendment is expected to provide greater flexibility to importing sugar mills.
According to the amendment published on September 7, importers bringing in raw sugar under the 1 million-tonne TRQ quota will now be required to convert it into white or refined sugar and sell it in the domestic market within a maximum of two months from the date of filing the Bill of Entry.
Earlier, the original notification issued by the Directorate General of Foreign Trade (DGFT) under the Ministry of Commerce and Industry on August 20, 2026, had required imported raw sugar to be refined and the resulting white or refined sugar to be sold in the domestic market by October 31, 2026. All other conditions of the original notification will remain unchanged.
The government allowed the import of 1 million tonnes of raw sugar amid expectations of lower sugar production in the current season and a rise of more than 50% in retail sugar prices in recent weeks. A day after the import notification was issued, the Ministry of Consumer Affairs, Food and Public Distribution clarified that sugar production during the current season was estimated at around 30.6 million tonnes, significantly lower than the initial estimate of about 34.3 million tonnes.
The government has taken several other measures to contain sugar prices. From September, it shifted from monthly to fortnightly sugar allocation quotas for mills. Under the new system, mills are required to sell at least 40% of their allocated quantity during the first week, while the remaining quantity is to be sold in the following week.
In addition, the maximum stock limit for sugar dealers has been reduced from 4,000 quintals to 2,000 quintals. The revised limit will remain in force from September 15 to November 30, 2026. The government had introduced the 4,000-quintal stock limit for sugar dealers across the country from August 1.
These measures are aimed at curbing hoarding and speculation while ensuring adequate availability of sugar in the domestic market at reasonable prices. However, retail sugar prices are still above Rs 60 per kg in several markets.
Recently, National Federation of Cooperative Sugar Factories Ltd (NFCSF) President Harshvardhan Patil said ex-factory sugar prices were continuing to decline. He said adequate sugar was available in the country and retail prices were expected to ease in the coming days.
ISMA Director General Deepak Ballani said ex-mill sugar prices had declined by around 30% from their peak. At the government's request, NFCSF and ISMA have also jointly decided to begin sugarcane crushing at mills from October 15, with the aim of increasing sugar supplies and easing market pressures.