Government Extends Duty-Free Sugar Import Deadline to December 31, 2026

The Finance Ministry had initially permitted duty-free imports of one million tonnes of raw sugar until October 31 through a notification issued on August 20. A fresh notification has now extended the deadline by two months.

Around 2.6 lakh tonnes of raw sugar have been imported so far. Import volumes have remained relatively low following a decline in domestic sugar prices after the government announced the additional import allowance.

The extension is intended to provide flexibility to secure overseas supplies if domestic prices rise. The availability of import permissions can also moderate inflationary expectations, encouraging domestic sellers to release stocks and potentially easing prices even before imported consignments reach the country.

Government Steps In to Stabilise Sugar Prices

Alongside the duty-free import facility, the government has introduced measures, including stockholding limits for traders, to maintain sufficient domestic supplies and prevent a sharp rise in prices.

Sugar production for the 2025-26 marketing year, which runs from October to September, is now estimated at 306 lakh tonnes, down from the earlier projection of 343 lakh tonnes.

Annual domestic sugar demand is estimated at approximately 280-285 lakh tonnes.

Panel to Examine Sugarcane Farmers’ Demands

Separately, the government constituted a high-level committee earlier this month to examine concerns raised by sugarcane farmers and recommend measures to address them.

The committee will consider demands for higher remunerative returns for sugarcane growers, taking into account cultivation costs and other relevant factors. It will also review calls for a revision of the ex-mill Minimum Selling Price (MSP) of sugar, considering production costs, market realisations and the financial viability of sugar mills.

Other issues under examination include the existing procedures for measuring and reporting sugar recovery, transparent verification mechanisms and sugarcane weighing practices at mills.

The panel will also assess whether the calibration, inspection and verification systems used for weighing sugarcane are adequate.

The government’s measures come amid efforts to balance consumer interests, price stability and the financial concerns of sugar mills and sugarcane farmers.