India Allows Duty-Free Import of Up to One Million Tonnes of Sugar
The government opened the window until 31 October 2026 to increase domestic supply and contain rising prices after lower production estimates.
New Delhi1 min read
Last updated
India will permit the import of up to one million tonnes of raw sugar at zero duty until 31 October 2026, the government announced in mid-August.
The decision follows estimates that net sugar production for the 2025-26 season may reach only about 27.9 million tonnes after accounting for ethanol diversion. Domestic prices had risen in preceding months, prompting the intervention.
Officials cited five factors behind the price increase and rejected claims that ethanol blending was the primary driver. The duty-free window aims to add supply quickly without disrupting longer-term policy on domestic production and biofuel use.
India is normally a major exporter. Opening imports on this scale is unusual and signals concern over household and industrial sugar costs. Traders expect the arrivals to ease pressure in the wholesale market within weeks if shipments materialise on schedule.
The measure is time-limited. After 31 October the normal duty structure is expected to resume unless further notifications are issued. Farmers and millers will watch whether the imports affect cane prices in the coming crushing season.
