New Delhi: India has relaxed the rules governing duty free imports of raw sugar, giving importers greater flexibility to process the commodity into refined sugar and sell it in the domestic market.
The move comes as sugar prices have increased in recent weeks and demand is expected to rise during the upcoming festive season. The government is also stepping up monitoring of the sugar trade to prevent hoarding and speculative activity.
Under the original notification issued on August 20, the government allowed duty free imports of up to 1 million tonnes of raw sugar through a tariff rate quota until October 31, 2026. Importers were required to process the raw sugar into white or refined sugar and sell it domestically by the same deadline.
The Directorate General of Foreign Trade has now replaced the fixed deadline with a two month processing window. The period will be calculated from the date on which the importer files the Bill of Entry, providing additional flexibility for processing and domestic distribution.
The government has also allowed a one time conversion of certain existing Advance Authorisations issued under SION E 52 into the tariff rate quota scheme.
The provision applies to raw sugar that was physically imported under those authorisations on or before August 20. It covers both refined sugar already produced and sugar that will be manufactured from the imported raw material.
The conversion remains subject to payment of the GST that was earlier exempted at the time of import, along with other applicable conditions.
The policy changes come as authorities seek to improve sugar availability before the August to November festive period, when consumption traditionally rises.
The government has also increased scrutiny of sugar mills and asked them to provide transaction level information on sales made between August 17 and 19. The details include quantities sold, transaction prices and information about buyers.
The combination of easier raw sugar processing timelines and tighter market monitoring is aimed at improving supply while discouraging stockpiling and abnormal price speculation.
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