To ease record-high domestic prices and rebuild tightening supply buffers ahead of the festival season, India has allowed duty-free imports of 1 million tonnes of raw sugar until October 31, 2026. This marks the first time in nearly a decade that the world's largest consumer and producer has resorted to imports.
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.
And around 3 million tonnes of sugar were diverted to ethanol this year, roughly 10% of sugar output.
The episode suggests the system was “misled” into believing fundamentals were strong, even as production lagged consumption.
6August 21, 2026 2.3K 3
