India Opens 1 MMT Duty-Free Raw Sugar Import Quota — Valid Till 31 October 2026

The Government of India has announced a major trade policy update for the sugar industry. Under DGFT Notification No. 31/2026-2027, dated 20 August 2026, the Directorate General of Foreign Trade (DGFT) has opened a duty-free Tariff Rate Quota (TRQ) of 10 lakh MT (1 Million Metric Tonnes) for raw sugar imports (Exim Code 170114), valid until 31 October 2026.

This move allows raw sugar imports to shift from "Free" import policy status to a duty-free quota-based mechanism, subject to specified conditions.

Key Highlights

• 1 MMT Duty-Free TRQ: Raw sugar can now be imported duty-free up to the 1 MMT ceiling before 31 October 2026.
• One-Time Conversion: Eligible Advance Authorisations under SION E-52 can be converted to the new TRQ scheme.
• Domestic Sale Mandate: Refined sugar produced from imported raw sugar must be sold in the domestic market by 31 October 2026.

Impact & Benefits

• Lower Landed Cost: Improves cost competitiveness of imported raw sugar for Indian refiners.
• Improved Availability: Strengthens domestic sugar supply chains and supports refiners.
• Price Support: Expected to help stabilize domestic sugar prices during the quota period.
• Flexibility: Gives importers room to regularise inventories and plan shipments better.

Global Implications

• Support to Global Prices: Increased Indian buying activity may firm up global raw sugar prices.
• More Export Opportunities: Major exporting nations, including Brazil, stand to benefit from higher Indian demand.
• Short-Term Impact: The quota is expected to affect near-term trade flows rather than represent a structural shift in India's sugar trade policy.

Who Should Focus on What?

• Importers: Evaluate TRQ allocation, freight costs, and delivery timelines early to maximize the window before 31 October 2026.
• Exporters: Closely monitor Indian tenders and pricing trends as demand increases.
• Traders: Manage deadline compliance, policy risk, and price volatility across the quota period.

Conclusion

India's decision to open a 1 MMT duty-free raw sugar import quota is a strategic move aimed at ensuring sugar availability, supporting domestic refiners, and strengthening India's sugar market ahead of the 2026-27 season. Stakeholders across the sugar import and trade ecosystem should track compliance timelines closely as the quota window closes on 31 October 2026.