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In a relief to importers, the Union government has revised the conditions for the import of duty-free raw sugar, removing the October 31 deadline to process the imported sugar and sell the refined product in the domestic market.
In a gazetted notification issued on Monday, the Directorate General of Foreign Trade (DGFT) modified the previous August 20 order which required raw sugar imported under the tariff-rate quota (TRQ) to be processed into refined sugar sufficiently in advance for its sale in the domestic market by October 31.
Under the revised condition, the imported raw sugar must be converted into white or refined sugar and sold domestically within a period not exceeding two months from the date of filing the Bill of Entry, which is the customs declaration filed by an importer for an incoming consignment.
The import cut-off of October 31 remains unchanged.
The decision came after the industry raised concerns over the earlier October 31 deadline. Shipments from Brazil, a key potential source for sugar imports, take around 40-45 days to reach India. Port handling, transportation to refineries and other import procedures add further time before the raw sugar can be processed. Once the consignments arrive, refiners also need time to convert the raw sugar into white or refined sugar and release it into the domestic market.
Under the Advance Authorisation Scheme, sugar refiners can import raw sugar without paying import duty. In return, they must process the sugar in India and export the finished product.
The August 20 notification allows refiners who had already imported raw sugar under this scheme to shift those quantities to the TRQ. After paying the GST that was exempted at the time of import, they can refine the sugar and sell it in India instead of exporting it.
The government allowed duty-free imports of 1 million tonnes of raw sugar, the first such move in nearly a decade, after a sharp rise in domestic sugar prices ahead of the festive season and a downward revision in sugar production estimates for the 2025-26 marketing year, which runs from October to September. The government also imposed stock limits on bulk consumers and directed states to step up inspections against hoarding and speculation.
Food secretary says ex-mill sugar prices down 18%
Food Secretary Sanjeev Chopra on Tuesday said ex-mill sugar prices had declined by 18 per cent to ₹55 per kg following the government’s import decision and measures against speculation and hoarding.
Ex-mill prices had risen to a record ₹67 per kg last week, which Chopra attributed to mills “jacking up” rates.
“Ex-mill price of sugar, which were jacked up by mills, have started cooling down. They have declined to Rs 55 per kg and will further drop in the coming days,” Chopra told news agency PTI.
He said the price spike was not rooted in fundamentals as the country had adequate sugar stocks despite the decline in production.
The fall in ex-mill prices has, however, not yet fully passed through to consumers. The average all-India wholesale sugar price stood at ₹58.29 per kg, while the average retail price was ₹63.05 per kg on August 24, according to Ministry of Consumer Affairs data.
(With inputs from agencies)
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