India has permitted duty free imports of one million tonnes of raw sugar until October 31, 2026. This is the first sugar import in nearly a decade. The move comes as domestic production fell short, retail prices rose 16% in a month and festive demand tightened supplies. Officials clarified ethanol diversion is not the main reason.
Sugar output estimates were reduced from 34.3 million tonnes to 30.6 million tonnes due to crop diseases and heavy rainfall. Consumption increased during the festive and wedding season. Retail sugar prices jumped from ₹48.18 per kilogram on July 20 to ₹55.70 per kilogram on August 20, showing a 16% rise. Global sugar prices also climbed 16% in two months, making imports costlier.
To manage the situation, the government allowed duty free imports under the tariff rate quota. Dealers are restricted to 400 tonnes and bulk consumers to 15 days of requirement. Mills have been advised to start crushing early from October 15, which is expected to add one million tonnes in October. Joint teams are checking mill stocks to prevent hoarding.
The ethanol debate was addressed. The share of sugar diverted to ethanol fell from 12% in 2022 to 9% in 2026. Most ethanol now comes from maize. Officials said ethanol policy helps manage surpluses and mill cash flows, not shortages.
