India Opens Sugar Imports After Decade Hiatus

In a significant policy shift, India has allowed duty-free imports of 1 million tonnes of raw sugar, marking the first such measure in approximately ten years. This decision aims to counter a sharp increase in domestic sugar prices anticipated before the upcoming festive season. The government has also revised the conditions for these imports, providing relief to refiners.

The Directorate General of Foreign Trade (DGFT) issued a notification modifying previous requirements. Initially, imported raw sugar under the tariff-rate quota (TRQ) had to be processed and sold domestically by October 31. Under the revised conditions, the imported raw sugar must now be converted to refined sugar and sold within two months of its customs entry, extending the flexibility for refiners.

These policy adjustments follow concerns raised by the industry regarding the logistical challenges of timely processing and import. The government's proactive measures, including stock limits for bulk consumers and inspections against hoarding, appear to be yielding results. Food Secretary Sanjeev Chopra announced that ex-mill sugar prices have already fallen by 18% to ₹55 per kg from a recent peak of ₹67 per kg, indicating a cooling of the market.