India Allows Duty-Free Sugar Imports to Curb Record Prices

The Government of India has authorized the duty-free import of up to 1 million metric tonnes of raw sugar until October 31 to combat record-high domestic prices. This action marks the first such import permission in nearly a decade and is intended to offset a projected decline in opening stocks and a surge in demand during the upcoming festival season, including Diwali, Dussehra, and Ganesh Chaturthi.

Eligibility for these imports is restricted to companies with in-house refining capacity, with an application window open from August 21 to August 28. To prevent hoarding and speculative trading, the government also imposed strict stock-holding limits from September 1 to November 30. Bulk consumers using more than 10 tonnes per month are now prohibited from holding inventories for more than 15 days.

Retail prices have already climbed 13% over the past year, while ex-mill prices in Maharashtra reached all-time highs. The Indian Sugar & Bio-Energy Manufacturers Association described the move as a precautionary measure. Joint Secretary Ashwini Srivastava stated that the proactive step would ensure adequate supply to consumers at reasonable and stable prices over the coming year.