India has extended the deadline for duty-free imports of one million tonnes of raw sugar by two months to December 31, 2026, from October 31, as the government seeks to strengthen domestic supplies and contain prices amid lower production forecasts and festive-season demand.
A Finance Ministry notification confirmed the extension. The government initially authorised the imports on August 20, but only around 260,000 tonnes had arrived so far, as international prices remained less competitive than domestic prices. The extended deadline is expected to give buyers more time to source overseas supplies if global prices become commercially attractive.
The government has also introduced stockholding limits for traders to improve domestic availability and curb price pressures. India’s sugar production for the 2025-26 marketing year, running from October to September, is estimated at 30.6 million tonnes, down from an earlier forecast of 34.3 million tonnes. Domestic consumption is estimated at 28 million to 28.5 million tonnes annually.
The US Department of Agriculture’s Foreign Agricultural Service attributed the production decline to erratic rainfall, prolonged dry spells, waterlogging and pest infestations that affected sugarcane yields and sugar recovery rates. Field surveys conducted between March and September 2026 identified weather-related stress in major producing states, including Maharashtra, Karnataka and Uttar Pradesh.
Meanwhile, India is preparing to restrict the diversion of sugarcane juice, syrup and B-heavy molasses for ethanol production during the 2026-27 ethanol supply year, beginning November 1, as the government prioritises sugar availability for domestic consumption. The decision is expected to be notified before the start of the new supply year.
During the sugar season that ended on September 30, mills diverted approximately three million tonnes of sugar for ethanol production, equivalent to around 10% of total output. The proposed restriction, together with the extended duty-free import window and stockholding limits, is aimed at managing domestic supplies amid lower production expectations and seasonal demand.