India opens duty-free sugar imports as retail prices rise 25% year-on-year
The government has allowed duty-free imports of 1 million tonnes of sugar and limited bulk consumers to 15 days of stock after weather-hit output and festive demand pushed retail prices to Rs 54.06 per kg. It expects supplies to remain adequate until the next crushing season begins in October 2026.
What happened
Government of India · India allowed duty-free import of 1 million tonnes of sugar and capped bulk-consumer stocks for 15 days as weather-hit output and festive
Key facts
- Retail sugar price: Rs 54.06/kg
- Retail price up 25% year-on-year
- Retail price up 20% month-on-month
- Duty-free sugar imports: 1 million tonnes
- Bulk-consumer stock limit: 15 days
- 2025-26 sugar output forecast: 30.6 million tonnes
- Output forecast 11% below initial estimate
- Initial production estimate: 34.3 million tonnes
- Net output estimate excluding ethanol diversion: 29 million tonnes
- Sugar diverted for ethanol: 9% in 2025-26 versus 12% in 2022-23
Why this matters
Retailers and food manufacturers may find opportunities in supply partnerships, import logistics, and private-label sourcing as policy intervention reshapes sugar procurement economics.