The government has extended the deadline for duty-free imports of 1 million tonnes of raw sugar until December 31, 2026, in a move aimed at strengthening domestic supplies ahead of the festive season.
According to a notification issued by the finance ministry, the extension allows eligible imports under the Tariff Rate Quota (TRQ) to continue for an additional two months beyond the original October 31 deadline.
The government initially approved the duty-free import of 1 million tonnes of raw sugar on August 20, with the measure intended to support domestic availability and help meet demand. However, industry data indicates that only around 2.6 lakh tonnes, or approximately 260,000 tonnes, have been imported so far.
Industry sources suggest that imports have remained limited because international prices have not been sufficiently competitive compared with domestic market prices. This lack of price parity has reduced the incentive for importers to bring in larger quantities of raw sugar.
The extended deadline is expected to provide greater flexibility for importers to act when global prices become more favourable. If international prices ease enough to make imports commercially viable, additional supplies could enter the domestic market before the end of the year.
The timing is significant as sugar consumption typically rises during festive periods, placing additional pressure on supply chains. By keeping the import window open for longer, the government aims to ensure that import opportunities remain available if market conditions improve.
However, the extension does not necessarily mean that imports will increase immediately. Actual import volumes will continue to depend on international prices, domestic market conditions and the commercial decisions of importers.
The coming weeks will therefore be important in determining whether the extended duty-free import window translates into higher sugar imports and improved domestic availability.
