India approves duty-free import of 1 million tonnes of raw sugar to curb prices

India will allow mills and refiners to import up to 1 million tons of raw sugar duty-free, a rare move aimed at stabilizing soaring domestic prices and securing supplies ahead of the peak festival season. The announcement on Thursday marks the first such import allowance for domestic use in nearly a decade, as the world's second-largest sugar producer grapples with tight inventories and strong consumer demand.

According to a notice from the commerce ministry, the imports are permitted without the existing 100% levy until October 31. Eligible companies with in-house refining capacity can apply for licenses between August 21 and August 28. The government stated the proactive step is intended to dispel market speculation and ensure adequate supply to consumers at reasonable and stable prices over the coming year.

The decision comes as benchmark ex-mill sugar prices in the key growing state of Maharashtra have recently hit an all-time high. Retail prices across major cities have also surged, climbing approximately 20% since early August. Industry officials attribute the price spike to depleted pipeline stocks after domestic consumption outpaced production during the 2025-26 sugar...