Indian Government Extends Duty-Free Sugar Import Deadline to December 31
The Indian government has extended the deadline for duty-free sugar imports to December 31 to stabilize prices during the festive season.
New Delhi, October 23 (Daily Kiran) : The Indian government has announced an extension of the deadline for duty-free imports of 1 million tons of raw sugar, now set for December 31, 2026. This decision aims to ensure adequate supply and reasonable prices during the festive season.
Initially, the Finance Ministry had permitted duty-free imports until October 31, 2026. However, a new notification issued on October 23 extends this deadline by two months. So far, approximately 2.6 million tons of raw sugar have been imported. The lower import levels are attributed to a decrease in domestic sugar prices following the government’s announcement to allow more imports.
The extension is intended to maintain supply and prevent price surges in the domestic market, ultimately helping to keep import prices down. In addition to allowing imports, the government has implemented several measures to ensure sufficient domestic supply and prevent drastic price increases, including imposing stock limits on traders.
For the marketing year 2025-26 (October-September), sugar production is now estimated at 30.6 million tons, down from a previous forecast of 34.3 million tons. The annual domestic demand is projected to remain around 28-28.5 million tons.
Earlier this month, the government formed a high-level committee to address issues raised by sugarcane farmers and recommend necessary measures to alleviate their concerns. This committee will investigate demands for increased profitability for farmers, considering factors such as cultivation costs. It will also examine the need for adjustments to the minimum selling price (MSP) of sugar in relation to production costs, market prices, and the financial viability of sugar mills.
Other key areas of focus for the committee include the current mechanisms for testing and reporting sugar recovery, ensuring transparency in verification processes, and evaluating the practices for weighing sugarcane at mills, including the adequacy of calibration, inspection, and verification mechanisms.
