Sugar Supply Tightens: Govt Extends Duty‑Free Raw Sugar Imports to End‑Year, Caps Stock

With the festive season already humming, Delhi has decided to give itself a bit more breathing room on sugar imports. A finance ministry notice now stretches the duty‑free quota for 1 million tonnes of raw sugar – part of the Tariff Rate Quota (TRQ) – all the way to 31 December 2026. Earlier, the window closed on 31 October, leaving traders scrambling.

Why the extra time? Simply put, the government hopes that global sugar prices might dip enough to make imports competitive. So far, importers have only managed to bring in about 2.6 lakh tonnes – a fraction of the quota – mainly because overseas prices haven’t matched domestic rates.

At the same time, the supply outlook isn’t looking rosy. The Ministry of Consumer Affairs now estimates that sugar production for the 2025‑26 marketing year (October‑September) will be about 306 lakh tonnes, down sharply from the earlier 343 lakh‑tonne forecast. Domestic demand, meanwhile, hovers around 280‑285 lakh tonnes.

To keep the market from wobbling, the government has rolled out tighter stock‑holding limits. In Himachal’s Bilaspur district, for instance, the ceiling for traders has been slashed from 2,000 to 1,000 quintals – a clear signal that hoarding won’t be tolerated.

District officials are also pushing dealers to log their inventories on the Food Stock Monitoring Portal, updating figures regularly. “If we know who holds what, we can step in before shortages turn into price spikes,” said Sheetal Sharma, the district controller of food and civil supplies.

Inspectors have been given the green light for surprise checks, ensuring that the new caps are more than just paperwork. All these moves – the extended import window, the lower production forecast, and the stricter inventory rules – are aimed at keeping sugar on the shelves and prices from spiralling as sweets and sweets‑laden celebrations approach.