Govt asks importers to sell refined sugar in 2 months after import

Four days after releasing the modalities for application and distribution of 1 million tonnes (mt) of raw sugar after import under Tariff Rate Quota (TRQ) scheme, the government has stipulated that importers would have to sell the refined sugar in the domestic market within 2 months.

In partial modification of Public Notice No. 27/2026-2027 dated 20.08.2026, and in exercise of powers conferred under Paragraphs 1.03 and 2.04 of the Foreign Trade Policy, 2015-2020, the Director General of Foreign Trade has made an amendment in the said Notice.

The Notice issued on August 20 had said: “The Raw Sugar imported under the TRQ shall be processed into White/Refined Sugar within a ‘reasonable’ period after import and, in any event, sufficiently in advance to enable its sale in the domestic market by October 31, 2026.”

However, sources said that the Food ministry took it up with DGFT as it felt that there should be a definitive period of making the imported sugar reach domestic market since the import decision was to help augment availability amid tight supplies.

Revised para

Lav Agarwal, Director-General of Foreign Trade, said that the revised para in the earlier Notice would be read as: “The Raw Sugar imported under the TRQ shall be processed into White/Refined Sugar within a reasonable period after import, provided that the importer shall convert the raw sugar into white/refined sugar and sell the same in the domestic market within a period, not exceeding two months, from the date of filing of bill of entry.”

All other terms and conditions of the public notice dated August 20 shall remain unchanged, he said.

India on August 20 allowed import of 1 mt of raw sugar duty-free as part of its efforts to tame soaring sugar prices and food inflation. In a notification, the Commerce Ministry said the imports would be allowed under TRQ regime till October 30, 2026. In addition, the Government also allowed a one-time option of conversion of sugar imported under advance authorisation scheme to TRQ. This includes refined sugar already produced or is to be produced from imported raw sugar, provided importers pay GST.

Published on August 25, 2026