The government has changed the timeline for processing and selling duty-free imported raw sugar in the domestic market.
Under the revised rule, importers will now get up to two months from the date of filing the Bill of Entry to convert the imported raw sugar into white or refined sugar and sell it in India.
The change comes as the government works to improve sugar supplies and control rising prices ahead of the festive season.
What Has Changed in the Raw Sugar Import Rule?
The Directorate General of Foreign Trade (DGFT) has revised the rules for importing 10 lakh tonnes of raw sugar under the tariff-rate quota (TRQ) scheme.
Earlier, imported raw sugar had to be processed into white or refined sugar and sold in the domestic market by October 31.
The new rule removes this fixed October 31 deadline.
Instead, importers must now complete the processing and sale of the imported sugar within a period of not more than two months from the date of filing the Bill of Entry.
This gives importers a timeline linked to the actual date of import rather than a common deadline for everyone.
Duty-Free Sugar Imports Allowed Till October 31
On August 20, the government had allowed duty-free imports of 10 lakh tonnes of raw sugar under the TRQ scheme until October 31.
The decision was taken as domestic sugar prices increased sharply ahead of the festive season, when demand generally rises.
The latest amendment only changes the processing and selling timeline.
The other terms and conditions mentioned in the August 20 notification remain unchanged.
The government had also allowed a one-time conversion of existing Advance Authorisations issued under SION E-52 into the TRQ scheme for raw sugar actually imported under those authorisations up to August 20.
Why Has the Government Changed the Timeline?
The move is aimed at improving sugar availability in the domestic market and easing price pressures during the festive period.
Sugar demand usually increases between August and November as festivals and celebrations lead to higher consumption.
By allowing duty-free raw sugar imports and giving importers a clear two-month processing window, the government is looking to ensure that supplies reach the domestic market smoothly.
Industry Says Sugar Supply Is Adequate
Despite the recent rise in sugar prices, industry representatives say there is no major shortage of sugar in the country.
ISMA Director General Deepak Ballani said the sharp increase in prices over the past 15-20 days was largely driven by market sentiment, speculative buying and concerns about short-term supply, rather than a structural shortage.
According to Ballani, enough sugar stocks will remain available until the end of the current season on September 30.
ISMA President Neeraj Shirgaokar also assured consumers that the country has sufficient stocks to meet domestic demand, including during the upcoming festive season.
With the revised import timeline and adequate domestic stocks, sugar prices are expected to see some moderation as supplies improve in the coming weeks.
