Government Allows Duty-Free Imports of 10 Lakh Tonnes Raw Sugar

August 22, 2026

Current Context: On 20 August 2026, the Government of India allowed the duty-free import of 10 lakh metric tonnes (1 million tonnes) of raw sugar under a Tariff Rate Quota (TRQ).  

Government Allows Duty-Free Imports of 10 Lakh Tonnes Raw Sugar

  • The move is aimed at increasing domestic sugar availability and controlling rising prices, especially ahead of the festive season when demand generally increases. 
  • The imports are permitted up to 31 October 2026. The decision was taken after domestic sugar prices rose sharply, with the all-India retail price increasing from ₹48.18 per kg on 20 July to ₹55.70 per kg on 20 August 2026.
  • The import will be made under a Tariff Rate Quota, meaning up to 10 lakh tonnes of raw sugar can enter India without customs duty within the permitted period.
  • The government has also imposed a 400-tonne stock limit on sugar dealers from 1 August to 30 November 2026 to discourage hoarding and artificial shortages. 
  • From 1 September 2026, bulk consumers will generally not be allowed to hold sugar stocks exceeding 15 days of consumption.
  • Sugar mills and states have also been advised to begin the 2026-27 crushing season from 15 October 2026, which is expected to increase sugar availability during October. 
  • This is a significant step because India has normally been a major sugar producer and exporter, but tighter domestic supplies and lower opening stocks created the need for imports.

Question: 

Q1. How much raw sugar has the Government of India allowed to be imported duty-free in 2026?
a) 5 lakh tonnes
b) 10 lakh tonnes
c) 15 lakh tonnes
d) 20 lakh tonnes

Answer: b) The government permitted 10 lakh metric tonnes of raw sugar to be imported duty-free under the Tariff Rate Quota (TRQ) up to 31 October 2026 to improve domestic availability and control prices. 

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