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India sugar mills may import half of quota

By Sohail Khan 25 August 2026, 4:44 pm

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Business News›News›Economy›Agriculture›India's sugar mills, refiners seen importing just half of duty-free quota

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India's sugar mills, refiners seen importing just half of duty-free quota

Synopsis

Indian sugar mills may import only half the allowed raw sugar quota. Falling domestic prices have reduced the profitability of these planned imports. Refineries are expected to take most of the available import volume. Domestic supplies are anticipated to rise from mid-October with the new season.

Indian sugar mills and refiners are likely to import only about half of the 1 million metric tonnes of duty-free raw sugar allowed by the government, as falling domestic prices make imports less profitable, industry officials said.<br> — Indian sugar mills and refiners are likely to import only about half of the 1 million metric tonnes of duty-free raw sugar allowed by the government, as falling domestic prices make imports less profitable, industry officials said.

Indian sugar mills and refiners are likely to import only about half of the 1 million metric tons of raw sugar the government has allowed duty-free, as falling domestic prices have eroded the profitability of imports, industry officials told Reuters.

The world's biggest sugar consumer last week allowed duty-free imports until October 31 to ease record-high prices ahead of the festival season, ‌when demand ⁠for traditional ⁠sweets typically peaks.

But domestic ex-mill prices have fallen nearly 20% from the record high hit last week.

Domestic supplies expected to rise from mid-October

India has a handful of port-based sugar refineries that import raw sugar duty-free for refining and export the resulting white sugar.

The government last week allowed these refiners to apply for the import quota, enabling them to sell refined sugar made from already-imported raw sugar in the domestic market until the end of October.

Also read: Sugar ex-mill prices down 18 pc to Rs 55/kg after import move, curbs on hoarding: Food secretary

These refineries could quickly sell around 300,000 tons of stocks they are holding in the domestic market, ‌said a Mumbai-based dealer at a global trading house, who declined to be named in line with company policy.

But mills are not interested in imports as domestic supplies are expected ⁠to rise from mid-October with the start of the new crushing season, potentially putting further pressure on local prices, he said.

India has asked mills to bring forward the start of sugarcane crushing to October 15 to boost supplies.

New Delhi has allowed imports of only raw sugar, which is likely to be sourced mainly from top producer Brazil and must be processed before being sold in the domestic market.

There is a need to allow duty-free imports of white sugar along with raw sugar to quickly boost supplies, said the Mumbai-based dealer.

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