15% Improvement in Sugar Supply Likely Through Imports

22-Aug-2026 01:33 PM

Mumbai: The Central Government's approval for the duty-free import of 1 million tonnes (10 lakh tonnes) of sugar—valid until October 31, 2026—could boost sugar supply by approximately 15% during the peak festive season of September–November and potentially lead to some easing of prices.

According to a leading rating agency, approval for importing this 1 million tonnes of raw sugar has been granted under the Tariff Rate Quota (TRQ) system. Given that domestic market prices are hovering at record highs, millers and refiners are expected to make every effort to expedite these imports.

Over the past three to four years, the average domestic sales quota allocated for the September–November quarter has been 7 million tonnes; the addition of this 1 million tonnes of imported sugar is expected to increase total sugar availability during this period by up to 15%.

Meanwhile, the government has directed sugar mills to commence sugarcane crushing from October 15, which could push sugar production for the month to 1 million tonnes. Typically, only a limited number of mills begin crushing in the third or fourth week of October, resulting in a production output of merely 300,000 to 400,000 tonnes.

With limited sugar stocks available to the industry, the government has had to set monthly sales quotas cautiously; however, imports and the additional production in October may provide an opportunity to increase these sales quotas. There is very little likelihood of an extension to the timeframe for duty-free sugar imports.