New Delhi: The Union government has revised the conditions governing the import of duty-free raw sugar, providing importers with a two-month window to refine the imported sugar and sell the finished product in the domestic market. The Directorate General of Foreign Trade (DGFT) has replaced the earlier October 31 deadline for domestic sale with a requirement that imported raw sugar be converted into white or refined sugar and sold in India within two months from the date of filing the Bill of Entry. However, the October 31 import cut-off remains unchanged.
The DGFT, through a gazetted notification issued on Monday, modified its earlier August 20 order, which required raw sugar imported under the tariff-rate quota (TRQ) to be processed into refined sugar sufficiently in advance to ensure its sale in the domestic market by October 31. The revised provision is expected to provide greater flexibility to importers and refiners, particularly those facing logistical delays in bringing raw sugar into India and processing it within the earlier fixed deadline.
The change follows concerns raised by the sugar industry over the October 31 domestic sale deadline. Brazil, which is considered a key potential source for imported sugar, typically requires around 40–45 days for shipments to reach India. Additional time is needed for port handling, transportation to refineries, customs procedures and other logistics before the imported raw sugar can be processed. Refiners also require time to convert raw sugar into white or refined sugar and release it into the domestic market. 
Under the Advance Authorisation Scheme, sugar refiners are permitted to import raw sugar without paying import duty, subject to the condition that the imported sugar is processed in India and the finished product is exported. The government's August 20 notification also allowed refiners that had already imported raw sugar under the scheme to shift those quantities to the TRQ. After paying the GST that was exempted at the time of import, refiners can process the sugar and sell it in the domestic market instead of exporting the finished product.
The government had permitted duty-free imports of 1 million tonnes of raw sugar, marking the first such move in nearly a decade. The decision came amid a sharp rise in domestic sugar prices ahead of the festive season and a downward revision in India's sugar production estimates for the 2025-26 sugar marketing year, which runs from October to September. Alongside the import decision, the government also imposed stock limits on bulk consumers and directed states to intensify inspections to prevent hoarding and speculative activities.
Meanwhile, Food Secretary Sanjeev Chopra said ex-mill sugar prices have declined by 18% to around ₹55 per kg following the government's decision to allow imports and measures aimed at curbing speculation and hoarding. Ex-mill sugar prices had climbed to a record ₹67 per kg last week, with Chopra attributing the sharp increase to mills raising prices.
Chopra said sugar prices were expected to decline further in the coming days and maintained that the recent price rise was not supported by market fundamentals, as India continues to have adequate sugar stocks despite lower production estimates. However, the decline in ex-mill prices has not yet been fully reflected in consumer prices. According to data from the Ministry of Consumer Affairs, the average all-India wholesale sugar price stood at ₹58.29 per kg, while the average retail price was ₹63.05 per kg on August 24.
The revised import conditions are expected to ease logistical pressure on sugar importers and refiners by allowing them additional time to process incoming raw sugar and supply refined sugar to the domestic market. The move also comes at a crucial time for the Indian sugar industry, with the government seeking to improve domestic availability and contain prices ahead of the festive season.
