- India on Thursday allowed duty-free imports of 1 million metric tons of sugar, the government said in an order, in a move to bring down record-high prices that are squeezing consumers ahead of the peak festival season.
- Sugar prices have risen nearly 40% in two months amid tightening supplies, prompting the world’s biggest consumer to import the sweetener for the first time in nearly a decade.
- The government allowed duty-free imports of 10 lakh tonnes of raw sugar under tariff rate quota till October 31 amid rising prices.
- The move aims to enhance domestic availability and cap price rise.
- The order follows a sharp rise in sugar prices, with ex-mill rates hitting record levels due to a lower opening stock ahead of the 2026-27 season.
India's government has taken decisive action to address soaring sugar prices by permitting duty-free imports of 1 million metric tons of raw sugar under a Tariff Rate Quota until October 31, 2026. This measure aims to enhance domestic availability and stabilize prices ahead of the festival season, which typically sees increased demand.345
The all-India average ex-mill price of sugar has surged to Rs 5,400-5,500 per quintal, a significant increase from Rs 3,900 a year ago, according to industry reports. Retail prices have also climbed approximately 13% year-on-year, reaching Rs 52.30 per kg as of August 18, compared to Rs 46.34 last year.
The government's decision comes in light of a 40% price increase over the past two months, driven by tightening supplies and a lower opening stock ahead of the 2026-27 season. To further control prices, the government has imposed stockholding limits on bulk consumers, restricting their stock to 15 days' consumption for those using more than 10 tonnes of sugar monthly.6
As major festivals like Ganesh Chaturthi, Dussehra, and Diwali approach, the demand for sugar is expected to rise, making this intervention crucial for consumer relief.
“Sugar prices have surged nearly 40% in two months, prompting the world's biggest consumer to import the sweetener for the first time in nearly a decade. The move follows ex-mill rates hitting record levels due to lower opening stock ahead of the 2026-27 season.”
