Duty-free import window for 10 lakh tonnes of raw sugar extended to December 31

The Centre has taken a key decision to ensure there is no shortage of sugar in the country's markets during the festive season and that prices stay under control. The deadline for duty-free import of 10 lakh tonnes of raw sugar under the tariff rate quota (TRQ) has been extended to December 31, 2026. It was earlier October 31. The Finance Ministry has issued a fresh notification for this.

On August 20, the Finance Ministry had permitted duty-free import of 10 lakh tonnes of raw sugar until October 31. The deadline has now been pushed back by two months. The aim is to keep sugar adequately available in the domestic market and, if prices begin to rise, to rein them in through imports.

The government had allowed a larger import, but sugar prices in the domestic market then fell. As a result, actual imports were lower than expected.

The production outlook is weak. Sugar production in the 2025-26 sugar marketing year is estimated at 306 lakh tonnes. The earlier estimate was 343 lakh tonnes, a reduction of 37 lakh tonnes in the production estimate.

Annual demand for sugar in the country is likely to be between 280 and 285 lakh tonnes. Given production and demand, the government is taking several steps to keep market supply smooth.

To keep supply steady and prevent a sharp spike in prices, the government has also taken measures such as imposing limits on traders' stocks. The longer duty-free import window could help make additional sugar available if needed.

Meanwhile, the government set up a high-level committee earlier this month to study the demands of sugarcane farmers. The committee will examine the demand for an increase in the remunerative price paid to farmers, in view of the cost of cane cultivation and other related factors.

It will also consider the demand for a change in the minimum selling price (MSP) of sugar at the mill level, taking into account the cost of making sugar, market rates and the financial condition of sugar mills.

The committee will also review the current methods of testing and reporting sugar recovery, transparent verification of recovery, and the process of weighing cane at sugar mills. It will also examine whether the arrangements for calibration, inspection and verification of weighbridges are adequate.