The government on Thursday allowed, for the first time in nearly a decade, the duty-free import of 1 million tonnes of raw sugar until October 31 in a bid to cool record sugar prices ahead of the upcoming festive season.
This marks a sharp U-turn in the government’s sugar policy. Just nine months ago, in November 2025, the government approved 1.5 million tonnes of sugar for export, later increasing it to 2 million tonnes, amid the expectation of a bumper crop. However, even before the trade barely moved, with only 800,000 tonnes shipped, the government curbed exports as domestic stocks tightened. The policy reversal has now raised questions over the estimate for sugar production and stock in 2025-26.
