The Union Government has extended the deadline for duty-free imports of 10 lakh tonnes (1 million tonnes) of raw sugar until December 31, 2026. This move aims to improve domestic availability and ensure adequate supplies during the festive season amid lower-than-expected sugar production and supply-demand concerns.
Initially permitted on August 20 with an October 31 deadline, only about 2.6 lakh tonnes have been imported so far. Limited imports are due to international prices not being favourable enough to make such purchases commercially viable.
The extension allows importers more time to source raw sugar when global prices become competitive. This flexibility helps avoid immediate purchases at high prices and ensures better domestic supply during peak festive demand.
Along with this duty-free import facility, the government has imposed stockholding limits on traders. These restrictions aim to prevent excessive stockpiling, improve sugar availability, and contain price pressures amid tight supplies.
India’s sugar production estimate for the 2025–26 marketing year (October to September) has been revised down to 306 lakh tonnes from the earlier forecast of 343 lakh tonnes, a reduction of 37 lakh tonnes. Annual domestic sugar demand is estimated at 280–285 lakh tonnes, making supply management essential to avoid price volatility.
The extended import window provides importers and refiners with greater flexibility to supplement domestic supplies when international prices are favourable. Together with stockholding limits, this measure seeks to ease supply pressures during the festive season.
However, the impact depends on international sugar prices and the volume of imports before the new deadline. While the extension offers an opportunity for additional supplies, it does not guarantee full import of the permitted quantity.
