What happened: duty-free raw sugar imports and bulk stockholding limits
The Government approved duty-free import of 10 lakh tonnes of raw sugar under a Tariff Rate Quota (TRQ) until 31 October 2026. The stated intent was to improve domestic sugar availability and limit price increases. The Government also set a stockholding limit for bulk consumers—consumers using more than 10 tonnes of sugar per month—to reduce the scope for excessive holding that can tighten market supplies.
Background and earlier position: rising sugar prices ahead of the 2026–27 season
The Government’s move came during a period of record ex-mill sugar prices. The reported explanation linked the rise to lower opening stock ahead of the 2026–27 sugar season. The all-India average ex-mill sugar price was reported at ₹5,400–₹5,500 per quintal, compared with ₹3,900 per quintal a year earlier.
What changed now: a time-bound TRQ window plus a quantified stockholding cap
The Government paired two instruments affecting supply and market behaviour: Raw sugar import access expanded through a time-bound TRQ with duty-free treatment for 10 lakh tonnes, valid until 31 October 2026.Bulk-consumer behaviour was constrained through a stockholding cap for buyers using more than 10 tonnes of sugar per month, aimed at preventing market tightness caused by excessive stock retention.