The government has relaxed the timeline for processing imported raw sugar after the industry raised concerns over shipping delays and port congestion.
India has permitted imports of 1 million tonnes of raw sugar to increase domestic supplies and help control retail prices.
Highlights
- Importers now get two months to process and sell imported raw sugar
- Earlier, sugar had to be processed and sold by October 31
- India has allowed imports of 1 million tonnes of raw sugar
- Industry flagged port congestion in Brazil and long shipping times
- DGFT issued a corrigendum relaxing the timeline on August 24
- Retail sugar prices remain close to ₹64 per kg
The government has eased conditions for raw sugar imports, giving importers more time to process the commodity and sell refined sugar in the domestic market amid concerns over shipping delays.
Under the revised rules, raw sugar imported under the Tariff-Rate Quota (TRQ) will have to be converted into white or refined sugar and sold in the domestic market within two months from the date of filing the bill of entry.
The change provides relief to sugar mills that had raised concerns over the earlier deadline. The government had previously required imported raw sugar to be processed and sold domestically by October 31, 2026.
India recently permitted imports of 1 million tonnes of raw sugar as part of measures aimed at increasing domestic availability and keeping retail prices under control.
However, the sugar industry told the government that meeting the October 31 deadline could be difficult. Industry representatives cited congestion at Brazilian ports as well as the time required for shipments to reach India. Cargo could take around 40 days to reach the country after import quantities are approved.
Taking these concerns into consideration, the Directorate General of Foreign Trade (DGFT) issued a corrigendum on August 24 to its August 20 notification, replacing the fixed deadline with the two-month window.
The National Federation of Cooperative Sugar Factories welcomed the relaxation, saying it could encourage more sugar mills to participate in the import programme. Mills have already started submitting applications for raw sugar imports through the DGFT portal.
The allocation process could take around two to three days, following which mills are expected to enter into import contracts. Contracts could be finalised by mid-September, while shipments, depending on congestion at overseas ports, are expected to begin reaching India by the third week of October.
The import decision comes as sugar prices remain elevated in the domestic market. Retail sugar prices were close to ₹64 per kg on Tuesday, even as ex-mill prices have softened following the government’s import decision and measures aimed at checking hoarding and speculation.
The extended processing window is expected to make imports more practical for mills while supporting the government’s efforts to improve domestic sugar supplies.
