The Directorate General of Foreign Trade (DGFT) has revised the processing and sale timeline for duty-free imported raw sugar, granting importers two months from the date of filing the Bill of Entry to convert raw sugar into white or refined sugar and sell it in the domestic market. The amendment, notified on 25 August, replaces the earlier fixed deadline of 31 October under the tariff-rate quota (TRQ) scheme for 10 lakh tonnes of raw sugar.

What Changed in the TRQ Norms

Under the original modalities — notified earlier in August — importers were required to process and sell TRQ-imported raw sugar domestically by 31 October. The revised provision removes that hard deadline and instead mandates completion within two months of the Bill of Entry filing date, offering greater operational flexibility to refiners and importers. All other terms and conditions of the 20 August notification remain unchanged.

Background: Duty-Free Imports and Advance Authorisations

On 20 August, the government permitted duty-free imports of 1 million tonnes of raw sugar under the TRQ scheme until 31 October, responding to a sharp rise in domestic sugar prices ahead of the festive season. Separately, the government allowed a one-time conversion of existing Advance Authorisations issued under SION E-52 into the TRQ scheme for raw sugar actually imported under those authorisations up to 20 August. This conversion covers both refined sugar already produced and sugar yet to be produced from the imported raw material, subject to payment of GST exempted at the time of import and other prescribed conditions.

Industry Assurance on Stocks and Prices

Industry leaders have sought to calm market concerns. Deepak Ballani, Director General of the Indian Sugar and Bio-Energy Manufacturers Association (ISMA), said the sharp rise in sugar prices over the past 15–20 days was driven largely by market sentiment, speculative buying, and concerns over short-term supply — not any structural shortage. Ballani added that sufficient sugar would remain available until the end of the current season on 30 September and that the market situation is expected to improve shortly.

Neeraj Shirgaokar, President of ISMA, also assured consumers that the country has adequate stocks and there would be no difficulty meeting demand, including during the upcoming festive season spanning August to November.

Why the Government Acted

The Centre's intervention reflects its broader effort to improve domestic sugar availability and contain price pressures during the August–November festive window, when demand typically spikes. The shift from a fixed deadline to a rolling two-month window is designed to prevent a bottleneck at refineries that could otherwise slow the conversion and sale of imported sugar. This is the second policy adjustment on sugar imports within the same month, signalling active price management by the government ahead of a politically sensitive consumption period.