New Delhi. Amidst the festive season, the Central Government has given relief to the people associated with the sugar industry and import business. The Directorate General of Foreign Trade (DGFT) has extended the deadline for duty-free import of raw sugar under Tariff Rate Quota (TRQ) by two months. After this decision, eligible traders and sugar mills will now be able to import 10 lakh metric tonnes of raw sugar without import duty till 31 December 2026.
October 31 deadline extended
Earlier this facility was available only till 31 October 2026. In such a situation, importers and sugar mills were left with limited time to purchase goods from the international market and complete their supplies. Due to the new decision of the government, they have got an additional extension of two months. However, other conditions stipulated in the previous notification will remain applicable as before.
What is TRQ system?
Under Tariff Rate Quota i.e. TRQ, the government allows a certain quantity of a commodity to be imported duty-free or with reduced duty on specific conditions. In the present case, this exemption is for import of 10 lakh metric tonnes of raw sugar.
How will traders and the market benefit?
The extension of deadline will provide additional time to eligible importers and sugar mills to source raw sugar from abroad, complete the shipment process and deliver the goods to the ports. This can reduce the risk of haste in import and consignment getting stuck.
This step of the government is expected to help the sugar industry in improving its supply system. However, its actual impact on sugar prices in the domestic market will depend on demand, supply and international market conditions.