India opens duty-free raw sugar imports as supply tightness drives a 30% price jump
India has permitted duty-free imports of 10 lakh tonnes of raw sugar as weaker cane yields, pest damage, ethanol diversion and exports pressure domestic availability. The move follows a reported 30% monthly rise in sugar prices and could ease costs for food retailers and bulk buyers ahead of festival demand.
What happened
India sugar market · India has allowed duty-free imports of 10 lakh tonnes of raw sugar as lower cane yields, pest attacks, ethanol diversion and exports
Key facts
- Duty-free import allowance: 10 lakh tonnes of raw sugar
- South-West monsoon rainfall: about 13% below Long Period Average
- Expected 2025-26 sugar output after ethanol diversion: about 279 lakh tonnes
- Domestic sugar consumption: 280 lakh tonnes
- 2024-25 sugar output: 262 lakh tonnes
- February 2026 sugar export quota: 20 lakh tonnes
- Sugar contracted for export before curbs: 7-8 lakh tonnes
- Projected October 2026 opening stocks: 40 lakh tonnes
- Domestic sugar prices rose: 30% in one month
- Bulk-consumer sugar inventory cap: 15 days
- Next crushing season requested to start by: October 15
- Agriculture Ministry May 2026 cane-output estimate: 500 lakh tonnes
- Potential actual cane output: 475 million tonnes or lower
- Industry sugar-production estimate: 343 lakh tonnes
- Likely actual sugar output range: 300-310 lakh tonnes
Why this matters
Companies with significant sugar exposure should prioritize supply agreements, import-channel partnerships and reformulation options rather than expect a one-off import quota to resolve longer-term availability constraints.