New Delhi, Aug 21: The government has approved the duty-free import of one million tonnes of raw sugar as part of measures to increase domestic supplies and control a sharp rise in sugar prices.
The decision comes after domestic sugar prices climbed to a 16-year high, with retail prices rising significantly in recent weeks amid concerns over low stocks and expectations of stronger demand during the upcoming festive season.
Under the new arrangement, the one million tonnes of raw sugar can be imported duty-free under the Tariff Rate Quota (TRQ). The processed sugar produced from these imports must be supplied to the domestic market by October 31, 2026.
The move is expected to improve sugar availability and ease pressure on prices faced by households as well as industries that depend heavily on sugar.
Alongside the import decision, the Department of Food and Public Distribution has introduced measures to prevent excessive stockholding. Bulk consumers using sugar as a raw material have been restricted to holding a maximum stock of 10 metric tonnes per month, with stocks not to be retained for more than 15 days.
The restrictions cover major bulk users such as confectionery manufacturers, soft drink companies and food-processing businesses. Government institutions and local bodies have been exempted from the stock limits.
The government has also sought detailed sales records from sugar mills to monitor market activity and address concerns over availability and possible hoarding. Mills have been asked to provide transaction-wise information, including quantities sold, prices and buyer details for sales made between August 17 and 19.
Sugar prices have risen sharply in recent weeks as market participants remain concerned about lower closing stocks and increased consumption expected during the festive season. Retail prices have reportedly increased by more than 20 per cent since August 7 in several major cities.
The government’s decision to bring in additional supplies, along with tighter monitoring of stocks and sales, is aimed at improving market availability and preventing excessive price increases.
The measures are expected to provide some relief to consumers and sugar-dependent industries while helping maintain adequate supplies during the upcoming high-demand period.