The government has permitted duty-free imports of 1 million metric tonnes of raw sugar until October 31, 2026.
The move comes after domestic sugar prices surged nearly 40% in two months amid tighter supplies.
Highlights
- India permits duty-free import of 1 million tonnes of raw sugar
- Imports will be allowed until October 31, 2026
- Domestic sugar prices have risen nearly 40% in two months
- India is importing sugar for the first time in nearly a decade
- Government aims to increase supplies before the festive demand surge
- Higher Indian imports could support global sugar prices in London and New York
India has allowed the duty-free import of 1 million metric tonnes of raw sugar as the government looks to increase domestic supplies and bring down record-high prices ahead of the festive season.
According to a Commerce Ministry notice, the duty-free imports can take place until October 31, 2026. The decision comes at a time when sugar prices in the domestic market have risen sharply due to lower production and tight availability.
Sugar prices in India have increased by nearly 40% in the past two months. The sharp rise has put additional pressure on household budgets and businesses that use sugar as a key input, particularly sweet makers, bakeries and food companies.
The timing of the import relaxation is also important as demand for sugar typically increases during India’s festive season. Consumption of sweets, cakes and other sugar-based products rises significantly during this period.
India is the world’s largest consumer of sugar. However, lower domestic production this year has tightened supplies, forcing the country to turn to imports for the first time in nearly a decade.
By allowing duty-free imports, the government expects additional supplies from overseas to reach the domestic market and help moderate prices. Removing import duty could make overseas purchases more commercially viable for Indian buyers.
The move could also have an impact on international sugar markets. Analysts expect India’s return as a major importer to provide support to benchmark sugar prices in London and New York as additional demand enters the global market.
The announcement also boosted sentiment around Indian sugar companies. Shares of Shree Renuka Sugars jumped 8.84% to ₹25.36 apiece, while Dhampur Sugar Mills gained 5.75% to ₹178.40.
The government’s immediate focus is expected to remain on maintaining adequate availability and preventing further price increases during the festival period. The impact on retail sugar prices will depend on how quickly imported supplies reach the domestic market and improve overall availability.
