India Extends Duty-Free Raw Sugar Imports to December 31

India has extended the deadline for duty-free imports of raw sugar to December 31, giving importers two more months to bring in up to 1 million metric tons of the commodity.

The deadline had been October 31. An official notification showed the change on Thursday, Reuters reported. India is the world's biggest sugar consuming country. The imports move under a tariff rate quota for raw sugar, and the foreign trade directorate said all other conditions from its August 20, 2026 notification stay the same.

The extension lands in a tight sugar year. India faced a sugar shortage in the 2025-26 season, which ended on September 30, and a similar situation is expected in 2026-27, The Hindu BusinessLine reported. Closing stock on September 30 was low, at 32 to 35 lakh tons. One lakh is 100,000, so the stock figure is 3.2 million to 3.5 million tons.

Permits had already been issued for about 8 lakh tons of the 10 lakh ton quota. No imports have taken place so far, industry sources told BusinessLine, because domestic sugar prices fell and imports stopped making money at the new prices. The longer window gives permit holders until the end of December to judge whether importing pays again.

Ethanol from cane juice is barred for the supply year

In a second move the same week, the Food Ministry barred sugar mills and distilleries from producing ethanol from sugarcane juice, syrup and B-heavy molasses during the 2026-27 Ethanol Supply Year. The ministry asked state governments to issue instructions to all concerned officials and to monitor compliance, with state excise departments asked to watch production.

The point of both moves is the same. Sugar that goes into fuel tanks does not reach shops, and the government is trying to protect supply for households first. Last season the government allowed 15 lakh tons of exports and later banned exports outright after permitting them. Import permits, an ethanol bar and export controls are the three levers it is now using together.

Crushing has started in Maharashtra, Uttar Pradesh lags

Sugar production has begun in Maharashtra, where about 70 mills have started crushing and about 1.25 lakh tons of sugar has been produced in the current season. The government has allowed mills to sell that October and November output at any time in those two months without seeking permission, on top of the monthly sales quota.

Uttar Pradesh, the other big producing state, is behind. Crushing there faces delays because mills fear very low sugar recovery from the cane, below 7 percent by some accounts in the trade, and do not want to take the financial hit of starting early. The government has been pressing mills to start.

Traders said mills are selling sugar this month from unsold stock left over from last season. The November sales quota will have to account for what was produced in October, with closing stock as low as it was at the end of September.

Why it matters and what happens next

Sugar is a household staple and a politically watched price in India. A shortage pushes up food bills fast, and the October to December window covers festival season demand and the start of the new crushing season at the same time. If imports still do not pay at December prices, the quota extension will change little on the ground, and supply will rest on how fast Uttar Pradesh mills start and how much cane yields. If world prices fall or domestic prices rise, the extended permits give traders a ready route to bring sugar in without a fresh policy fight.