The Indian government has approved the duty-free import of up to one million tonnes of raw sugar, a strategic move designed to stabilize domestic prices and ensure adequate supplies ahead of the upcoming festive season. This decision, notified by the Directorate General of Foreign Trade (DGFT), allows the import under a Tariff Rate Quota (TRQ) at zero duty until October 31, 2026.
Pre-Emptive Action Amid Price Concerns
The measure comes as domestic sugar prices have shown an upward trend. However, the Indian Sugar & Bio-energy Manufacturers Association (ISMA) has clarified that the decision is not a response to a supply shortage. According to ISMA, current stocks with mills are sufficient to meet domestic demand until the new crushing season begins.
ISMA attributes the recent price increases to market speculation and panic buying driven by anticipation of the festive period. The association stated that the government's intervention sends a clear signal against unwarranted price escalations.
Industry Collaboration and Early Crushing Expected
To further bolster supply, ISMA anticipates that crushing in the new sugar season will commence 10 to 15 days earlier than usual. This accelerated start will allow fresh domestic sugar supplies to reach the market sooner, complementing the imported quantities.
The industry body described the duty-free import window as a “precautionary measure” to provide an additional buffer during months of typically higher sugar demand. It aims to pre-empt sharper price increases and discourage speculative hoarding without indicating an immediate supply gap.
ISMA has pledged full cooperation with the government to ensure the swift import and processing of the raw sugar, as well as the early start of the crushing season. The association expressed confidence that the combined effect of increased import availability, early domestic production, and existing stocks will effectively cool and stabilize sugar prices in the near term.