1 day ago
Government shifts raw sugar imports to daily quota allocation
The government wants to bring more sugar into the country because sugar has become more expensive.
It will give out the remaining import permission in small daily batches instead of all at once.
Sugar mills and refiners can apply online for part of the available amount.
If too many applicants apply, each one will receive a share based on how much they requested.
The government is also reducing how much sugar dealers can store.
Large users cannot keep more than 15 days of sugar supplies.
Officials are checking sugar stocks to prevent hoarding and shortages.
The government also wants mills to start crushing sugarcane earlier, which could increase sugar supplies during the festive season.
The Centre shifted allocation of the remaining 202,550 tonnes of raw sugar imports to a daily system.
The move follows a 37.5% annual rise in average retail sugar prices to ₹63.28 per kilogram.
Sugar dealers’ stockholding limit will be reduced to 2,000 quintals from 4,000 quintals between 15 September and 30 November.
Bulk consumers cannot hold more than 15 days of sugar consumption from 1 September.
The government expects earlier crushing from 15 October 2026 to raise October sugar production above 1 million tonnes.
- Who
- The Centre, eligible sugar mills and refiners, sugar dealers, bulk consumers, and government stock-verification teams.
- What
- The government changed the allocation of 202,550 tonnes of remaining raw sugar imports to a daily application and allocation system, while tightening stockholding restrictions.
- Where
- Applications must be submitted online through the Directorate General of Foreign Trade website.
- When
- The notification was dated 1 September; the application window runs for seven days, and stock limits apply from 15 September to 30 November.
- Why
- The measures aim to improve domestic sugar availability, address rising prices, and curb hoarding and speculative trading before the festive season.
Key facts
- Remaining import quota
- 202,550 tonnes of raw sugar under a 1 million-tonne tariff rate quota.
- Retail price increase
- Average retail sugar prices reached ₹63.28 per kilogram on 31 August, up 37.5% from ₹46.02 a year earlier.
- Dealer stock limit
- The limit will fall from 4,000 quintals to 2,000 quintals from 15 September through 30 November.
- Bulk consumer limit
- Bulk consumers are barred from holding more than 15 days of consumption from 1 September.
- Application deadline
- Eligible mills and refiners can apply online until 7 September.
- Production estimate
- Current-season sugar production is estimated at around 30.6 million tonnes, below the initial estimate of 34.3 million tonnes.
- Expected October output
- Earlier crushing could raise October production from the usual 300,000–400,000 tonnes to more than 1 million tonnes.
Quotes
Binod Anand
Agricultural economist and member of the Centre's high-powered Committee on MSP
“The daily allocation of the remaining import quota would provide greater flexibility to respond to changes in domestic sugar availability and prices, compared with a one-time allocation. The mechanism could help ensure that quotas are released in line with market requirements rather than being concentrated in a single allocation.”
livemint.com
Sources
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