Sugar Quota Deadline Extended
India extends the raw sugar quota surrender deadline to September 2026 amid falling prices.
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Before the extension, the DGFT had allocated about 797,450 tonnes of the 1-million-tonne quota, while 202,550 tonnes remained available for fresh applications.
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The new deadline replaces an earlier rolling 15-day window that allowed traders to surrender unwanted quantities on a continuing basis.
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A sugar analyst said that, because domestic prices had corrected while global prices increased, “there is no parity to import now,” making surrender of unused allocations more likely for mills that received large quotas.
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The Food Ministry had approved two refiners to sell 50,000 tonnes each in the domestic market on August 31, followed by an additional 100,000 tonnes allocated to them for September sales.
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The DGFT’s September 14 notice was issued under paragraphs 1.03 and 2.04 of the Foreign Trade Policy 2023 and continued Public Notice No. 27/2026-2027 dated August 20, 2026.
India's government has extended the deadline for surrendering unused raw sugar import quotas to September 30, 2026. The move affects holders of a 1-million-tonne duty-free import allocation that was created to boost supplies and control prices before the festive season Business Standard.
Traders who surrender unused quota must pay 0.5% of the shipment's cost as a fee. The extension replaces a rolling 15-day surrender window and will clarify how much of the quota actually gets used News on Air.
Why Import Quotas Are Going Unused
India's domestic sugar prices have fallen sharply while global prices have climbed. This eliminates the profit incentive for mills to import New Indian Express. Sugar analysts note there is now "no parity to import," making surrender of large allocations likely IBTimes.
Government Allocates Additional Refineries to Sell Domestically
On August 31, India's Food Ministry approved two refiners to sell 50,000 tonnes each in the domestic market News on Air. The ministry then allocated an additional 100,000 tonnes for September sales, aiming to increase supplies without relying on imports Business Standard.
Quota Usage Falls Short of Initial Targets
Of the 1-million-tonne quota, only 797,450 tonnes have been allocated so far. That leaves 202,550 tonnes available for fresh applications News on Air. The extended deadline will provide clarity on how much quota holders actually intend to use Business Standard.
Government Pressures Mills to Prevent Price Spikes
Authorities continue urging sugar mills to provide accurate inventory data and avoid hoarding, which could push retail prices higher during the festive season IBTimes. The government also relaxed stockholding limits for bulk consumers from 15 to 30 days to ease supply pressures New Indian Express.
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