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India will allow duty-free imports of 1 million tonnes of raw sugar, a commerce ministry notice said on Thursday, as the government seeks to bring down record-high domestic prices in the world’s biggest sugar-consuming country.
The notice allows for the imports between now and October 31, ahead of India’s festival season when consumption in India peaks because of demand for traditional sweets.
Sugar prices in India have risen by nearly 40% in two months as lower production has tightened supplies, forcing India to import sugar for the first time in nearly a decade.
Benchmark white sugar futures in London and raw sugar futures in New York jumped by as much as 4% after India announced plans to allow duty-free imports on Thursday. India imposes a 100% duty on sugar imports.
India has a handful of port-based sugar refineries that import raw sugar duty-free for refining and export the resulting white sugar.
The government has allowed these refiners to apply for the 1 million tonnes import quota that would allow them to sell refined sugar made from raw sugar they have already imported in the domestic market until the end of October, the order said.
The result could be to quickly add around 300,000 tonnes to the local market, a Mumbai-based dealer with a global trading firm said, asking not to be named because he was not authorised to speak publicly.
However, a New Delhi-based dealer with a global trading firm said India was likely to import raw sugar mainly from Brazil, with shipments taking nearly two months, meaning the imports will boost domestic supplies from October rather than immediately.
Sugar mills and refiners with functional capacity to convert raw sugar into white sugar must apply between August 21 and August 28 for the tariff-rate quota that allows imports at zero duty, the order said.
More details: https://www.reuters.com/world/india/india-allows-duty-free-imports-sugar-2026-08-20/