Duty-Free Raw Sugar Imports: Deadline Extended to December 31

The Centre has extended the deadline for duty-free imports of raw sugar from 31 October to 31 December 2026, according to a DGFT notification dated 19 October reported by PTI and Business Standard on 23 October. The 10 lakh tonne quota under the tariff rate quota (TRQ) scheme stays the same, and so do its conditions. Only about 2.6 lakh tonnes have arrived so far, industry data cited in the reports shows, because imported raw sugar has not been cheap enough to compete with domestic supply.

Two More Months to Bring in Sugar

Importers and refiners now have until 31 December to bring in raw sugar without duty and sell it as refined sugar at home. The extension adds no new quota. Officials say the aim is to keep festive-season supply steady and to give buyers time to import if world prices ease enough to make shipments viable, Business Standard reported. Retail prices matter most to households buying sweets and cooking for Diwali, and the government has also kept stockholding limits on traders to hold prices in check.

Record Prices Behind the Quota

The government opened the quota on 20 August after retail sugar prices reportedly crossed Rs 60 a kg. Closing stock for the current season was estimated at about 35 to 39 lakh tonnes, well below the 60 lakh tonne buffer the government considers normal, The Week reported in August. From 1 September to 30 November, bulk consumers can hold no more than 15 days of sugar stock.

Production for the 2025-26 season (October to September) is now estimated at 306 lakh tonnes, down from an earlier forecast of 343 lakh tonnes, against annual domestic demand of 280 to 285 lakh tonnes. Separately, oil companies have barred sugar-based ethanol in 2026-27, which leaves more cane for the sugar mills.

Stockholding Limits Run Till 30 November

The stock limits on bulk buyers end on 30 November, a month before the new import deadline. Neither the Finance Ministry nor DGFT has said whether they will be extended. Read more on the economy in IPB’s Economy section.

Source: Based on reporting by Business Standard (PTI), Free Press Journal, TaxGuru (DGFT Notification 45/2026-27) and The Week.

Image: File photo.