Government of India Amends Import Policy for Raw Sugar

“Indirect Tax I Indirect Tax Litigation I Customs & FTP I Central Licensing I Arbitration I Advisory”

Dated: 21.08.2026

Government of India Amends Import Policy for Raw Sugar

The Government of India has recently issued a significant notification amending the import policy for raw sugar. This move is set to impact the sugar industry, importers, and the broader market. Here’s a detailed overview of the changes, their implications, and what stakeholders need to know.

Overview of the Notification

On August 20, 2026, the Directorate General of Foreign Trade (DGFT), under the Ministry of Commerce & Industry, announced an amendment to the import policy for raw sugar (Exim Code 170114). The key highlights are:

Duty-Free Import Quota: Up to 10 lakh metric tons (MT) of raw sugar can now be imported duty-free under a Tariff Rate Quota (TRQ) until October 31, 2026.
Policy Classification: The import of raw sugar remains classified as “Free” but is now subject to the TRQ limit and specific conditions.

Detailed Policy Changes

1. Tariff Rate Quota (TRQ) for Raw Sugar

Quota Limit: A maximum of 10 lakh MT of raw sugar can be imported duty-free.
Validity: This quota is valid up to October 31, 2026.
Conditions: Imports under this quota must comply with conditions specified by the DGFT.

2. Conversion Option for Advance Authorisations

One-Time Conversion: Holders of Advance Authorisations issued under SION E52 are given a one-time option to convert their scheme to the TRQ Scheme.
Eligibility: This applies to the quantity of raw sugar actually imported under such authorisations up to the date of the notification.
Inclusion: The conversion covers both refined sugar already produced and to be produced from the imported raw sugar.

3. Compliance and Conditions

GST Payment: Conversion is subject to payment of any exempted GST availed at the time of import.
Domestic Sale Deadline: Refined sugar manufactured from the imported raw sugar must be sold in the domestic market by October 31, 2026.
Additional Conditions: Other conditions may be prescribed by the authorities as needed.

4. Administrative Procedures

DGFT Role: The DGFT will issue a Public Notice specifying the procedure for administering the TRQ and the conversion process from Advance Authorisation to the TRQ Scheme.

Implications for Stakeholders

For Importers

Increased Import Opportunities: Importers can now bring in raw sugar duty-free within the specified quota, reducing costs and potentially increasing supply.
Scheme Flexibility: Those with existing Advance Authorisations have a one-time chance to switch to the TRQ Scheme, offering greater flexibility in managing imports and compliance.

For the Sugar Industry

Market Impact: The duty-free import window may help stabilize domestic sugar prices and ensure adequate supply during periods of shortage.
Compliance Requirements: Sugar manufacturers must ensure timely sale of refined sugar in the domestic market and adhere to GST and other regulatory requirements.

For Policymakers and Regulators

Enhanced Oversight: The DGFT’s role in administering the TRQ and conversion process ensures better monitoring and control over sugar imports.
Policy Adaptability: The amendment reflects the government’s responsiveness to market needs and its commitment to balancing domestic interests with trade facilitation.

Conclusion

The amendment to the raw sugar import policy marks a proactive step by the Government of India to manage supply, support the sugar industry, and provide flexibility to importers. Stakeholders should closely follow DGFT notifications for detailed procedures and ensure compliance with all specified conditions to benefit from the new policy framework.

In case you face any issues related to Indirect Tax-Customs, GST, Foreign Trade Policy (FTP), Arbitration matters and Central Licensing and related advisory matters in India then please feel free to get in touch with SJ EXIM Services.

We offer Legal advice and litigation support in matters related to Indirect Tax-Customs, FTP, other Indirect Tax matters & Arbitration law, all sorts of Central licensing and related matters. Come and explore the new way of doing business with us!

We specialize in paralegal services, litigation support, tax and regulatory matters, delivering reliable, efficient, and result-oriented legal assistance.

Source: DGFT

Disclaimer

Handy Download:

DGFT NotificationDownload

Connect with us for more-

@ Team S J EXIM SERVICES, New Delhi, IN

CP: Ms. Shubhra Jha, Founder

Tel: +91-11-4999 2707 I +91-9999005693

Web: www.sjexim.services

EMAIL: operations@sjexim.services I shubhra@sjexim.services

Facebook: www.facebook.com/sjeximservices

LinkedIn: https://www.linkedin.com/company/90794255/admin/feed/posts/