New Delhi In a major policy shift aimed at controlling soaring domestic prices, the Central Government has authorised the duty-free import of one million metric tonnes (10 lakh tonnes) of raw sugar. The move comes as a preemptive measure ahead of the crucial festive season, ensuring adequate domestic supply and price stability.
According to a notification issued by the Directorate General of Foreign Trade (DGFT) on Thursday, the import of raw sugar will be permitted under the Tariff Rate Quota (TRQ) mechanism. The allowance for zero-customs-duty import will remain in effect until October 31.
The decision is a direct response to a sharp inflationary spike in the domestic sugar market, where retail prices have surged by approximately 40 per cent over the past two months. With the festive season approaching—a period that traditionally sees a massive spike in the consumption of sweets, baked goods, and other sugar-heavy food items—policymakers feared further price escalations. India currently stands as the world’s largest consumer of sugar, making domestic price regulation a high priority for the government.
Significantly, this marks the first time in nearly a decade that India has had to resort to large-scale sugar imports. The shift from being a net exporter to permitting imports has been driven by a noticeable dip in domestic sugarcane production and subsequent supply chain constraints across the country.
The Commerce Ministry expressed confidence that the duty-free influx of raw sugar will significantly boost market availability and help cool down the inflated retail prices.
Meanwhile, market analysts suggest that India’s sudden entry into the global market as an importer will likely have international ramifications. Market experts note that the substantial extra demand from India is expected to provide robust support to benchmark sugar prices in global trading hubs like London and New York.
As the October 31 deadline approaches, industry stakeholders and consumers alike will be closely monitoring how this massive import quota impacts the retail shelves during India’s peak celebratory months.