India is considering allowing limited duty-free sugar imports as domestic prices continue to rise and sugar mill stocks remain under pressure. The move is being considered ahead of the festive season, when demand for sugar traditionally increases
According to media reports, the government may allow imports of around 1 million tonnes of raw sugar at zero duty. If approved, this would be the first such move in nearly a decade. India last permitted raw sugar imports during the 2016-17 season.The government is also reportedly considering tighter stockholding limits for bulk traders to improve the availability of sugar in the domestic market.
These measures are aimed at preventing further price increases and ensuring sufficient supplies during the upcoming festival season.Low stocks at sugar mills are considered one of the main reasons behind the recent increase in sugar prices. Reports have also suggested that higher exports, combined with inaccurate production estimates, contributed to the tightening of domestic supplies.The Centre had allowed sugar exports of 1.5 million tonnes in November 2025. The permitted export quantity was later increased to 2 million tonnes.Sugar prices have risen sharply across several markets. In Kolhapur, one of Maharashtra’s major sugar trading centres, prices increased nearly 20 per cent in August to around Rs 5,400-Rs 5,560 per quintal.Retail prices have also moved higher. Data from the Department of Consumer Affairs showed the average retail sugar price across India at around Rs 52.30 per kg on August 18. In Punjab, prices in some markets reached nearly Rs 65 per kg, while Mumbai and Bhopal saw prices moving towards Rs 58-Rs 63 per kg.
The price increase has come despite government estimates that domestic sugar supplies would be sufficient to meet demand until the next season’s production arrives.To bring the situation under control, the government is considering measures such as lowering stockholding limits, allowing limited sugar imports and reducing import duties.Sugar consumption generally increases from August through November due to the festive season. With Ganesh Chaturthi, Dussehra and Diwali approaching, authorities are looking to ensure that adequate supplies are available and that consumers do not face further sharp increases in prices.
