- The government on Thursday (August 20, 2026) allowed duty-free imports of 10 lakh tonnes of raw sugar under a Tariff Rate Quota (TRQ) till October 31 amid rising prices.
- The move is aimed at enhancing domestic availability and capping price rises.
- The order comes against the backdrop of 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.
- The all-India average ex-mill price rose to ₹5,400-5,500 per quintal on Tuesday, up from ₹3,900 a year earlier, according to an industry body.
- Retail sugar prices climbed about 13% year-on-year to ₹52.30 per kg (as of August 18) from ₹46.34 a year ago, according to Consumer Affairs Ministry data.
- The Food Ministry has notified the Sugar (Stockholding Limit of Bulk Consumers) Order, 2026, which covers confectioners, soft drink manufacturers, food processing units, sweetmeat sellers and other institutional buyers. The order will come into force from September 1 and remain in effect till November 30.
- The DGFT also issued modalities for the application and distribution of TRQ for the import of 10 lakh MT of raw sugar and one-time conversion from the Advance Authorisation (AA) Scheme to the TRQ Scheme. Applications are invited online from millers and refiners possessing their own functional capacity to convert raw sugar into white/refined sugar, with the application window from August 21, 2026 till August 28, 2026.
India has taken significant steps to manage rising sugar prices by permitting duty-free imports of 10 lakh tonnes of raw sugar under a Tariff Rate Quota (TRQ) until October 31, 2026.12
The Directorate General of Foreign Trade (DGFT) announced this policy change on August 20, 2026, stating, “The import policy for raw sugar is amended to allow 10 lakh MT of duty-free imports under Tariff Rate Quota (TRQ) till October 31, 2026.”910
This initiative aims to enhance domestic availability and cap price increases, as the all-India average ex-mill price surged to ₹5,400-5,500 per quintal, up from ₹3,900 a year earlier.5
Retail sugar prices have also climbed approximately 13% year-on-year, reaching ₹52.30 per kg as of August 18, compared to ₹46.34 a year ago, according to Consumer Affairs Ministry data.6
In addition to the TRQ, the government has imposed stockholding limits on bulk consumers, restricting those using more than 10 tonnes of sugar a month to hold stock for no more than 15 days’ consumption.
Food Minister Pralhad Joshi emphasized this measure in a social media post, highlighting the need for regulation amid the rising prices.
The Sugar (Stockholding Limit of Bulk Consumers) Order, 2026, will take effect from September 1 and remain in place until November 30.78
The DGFT has also outlined the application process for the TRQ, inviting applications from millers and refiners with the capacity to convert raw sugar into refined sugar, with the application window open from August 21 to August 28, 2026.
“The government also imposed a stockholding limit on bulk consumers using over 10 tonnes monthly, effective September 1. Retail sugar prices have climbed 13% year-on-year to ₹52.30 per kg, with ex-mill rates at ₹5,400-5,500 per quintal.”
