India Eases Sugar Import Rules to Curb Price Surges

The Government of India has implemented new measures to stabilize domestic sugar prices and prevent hoarding before the upcoming festive season. These actions follow a significant price surge, with costs rising from ₹48.18 per kg on July 20 to ₹63.05 per kg on August 24. The price increase was driven by weather damage, lower production, and hoarding, leaving domestic stocks below the normative buffer of 6 million tonnes.

To address the shortage, the Directorate General of Foreign Trade replaced a fixed October 31, 2026, deadline for processing and selling duty-free raw sugar imports with a flexible two-month window starting from the date of filing the Bill of Entry. This update complements a previous notification that allowed the duty-free import of 1 million tonnes of raw sugar under a tariff-rate quota.

Additionally, the government halved the stockholding limit for bulk sugar consumers to 15 days, effective September 1. Authorities have also increased monitoring of sugar mills to ensure market stability and curb speculative hoarding.