India eases raw sugar import rules as it cracks down on hoarding

India's government has eased rules for duty-free imports of raw sugar, aiming to combat hoarding and supply shortages ahead of the festive season. Previously, importers had just one month to convert raw sugar into refined sugar and sell it domestically. Now, they are given a two-month window from the date they file the Bill of Entry.

The government also allowed a one-time conversion of existing Advance Authorisations into the TRQ scheme for raw sugar imported under those authorisations, subject to GST payment and other conditions. Domestic sugar stocks are currently 3.5-3.9 million tonnes, below the government’s 6 million tonne buffer. The change comes as sugar prices have surged from ₹48.18/kg to ₹63.05/kg due to lower-than-expected production, crop damage, global supply concerns, and hoarding.

The government has rejected diversion of sugar to ethanol production as the primary cause. With tight supplies before the new crushing season, the Centre's decision to permit duty-free imports of 1 million tonnes aims to improve availability in the domestic market. The government has also reduced the stockholding limit for bulk sugar consumers to 15 days of consumption, increased monitoring of sugar mills, and asked mills to provide transaction-level details of sales between August 17 and 19.