Major government decision regarding sugar ahead of Diwali! Changes made to import policy..

Since August, rising sugar prices in the country have impacted the pockets of ordinary consumers. The state of sugar supply and retail prices has become a cause for concern for both consumers and the government. In an effort to ensure sufficient supply and bring down retail prices just ahead of Diwali, the government has taken a significant step.

The Government of India has extended the deadline for the duty-free import of 1 million (10 lakh) metric tonnes of raw sugar—under the Tariff Rate Quota (TRQ) scheme—by two months, setting the new deadline for December 31, 2026. This decision provides importers with an additional two months to import the specified quantity of sugar. The Directorate General of Foreign Trade (DGFT), under the Ministry of Commerce and Industry, announced this extension via Notification No. 45/2026-27, issued on October 19, 2026.

Changes to Import Policy
As part of an amendment to the import policy, the deadline for the import of raw sugar—classified under EXIM code 170114—has been extended from October 31, 2026, to December 31, 2026. It is worth noting that the government had previously authorized the duty-free import of 1 million metric tonnes of raw sugar under the TRQ scheme via Notification No. 31/2025-26, issued on August 20, 2026. The new notification modifies the terms of the existing import policy, thereby extending the period for duty-free imports. However, all other conditions stipulated in the notification issued in August remain unchanged.

Importantly, there has been no change to the overall limit for duty-free imports, which remains at 1 million metric tonnes. This decision grants importers more time to procure the designated quantity of raw sugar, while the total import ceiling established by the government remains unaltered.

Why did the government extend the deadline?
During the month of August, around the time of Raksha Bandhan, sugar prices reached significantly high levels. This sparked speculation regarding the balance between sugar availability and market demand in the coming period. In light of this situation, the government had initially permitted sugar imports until October 31. Now, the deadline has been extended by two months to meet the rising demand for sugar during the Diwali and New Year period and to keep retail prices under control. This is expected to provide relief to consumers from the rising cost of sugar.

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