India is considering limited duty-free sugar imports as domestic prices climb to record levels ahead of the festive season, according to a Reuters report citing government and industry sources. The proposed move, if approved, could bring overseas sugar into India for the first time in nearly a decade as authorities look for ways to increase supplies and prevent prices from rising further during the high-demand period from August to November.

Several measures are reportedly being discussed, including reducing import duties, allowing a limited quantity of sugar to be brought into the country, restricting the stocks held by bulk traders and changing the monthly quantity mills are permitted to release into the domestic market. Wholesale sugar prices in Kolhapur, one of Maharashtra’s major trading centres, have reportedly risen nearly 20 per cent since the start of August to around Rs 5,350 per 100 kg. The increase has come despite government assessments that domestic stocks should be sufficient to meet consumption until the arrival of new-season sugar. Industry participants, however, say supplies in the physical market have become tight. Ashok Jain, president of the Bombay Sugar Merchants Association, told Reuters that imports may be needed to improve availability and control prices during the festive period.

One proposal being considered would allow sugar mills to import around 1 million metric tonnes of sugar without duty before the end of October, according to a Mumbai-based dealer cited in the report. Mills could prefer raw sugar over white sugar because the current domestic price of refined sugar leaves limited room for profitable imports. India already has some port-based sugar refineries that can import raw sugar duty-free under a system requiring them to export an equivalent quantity of refined sugar. Authorities could also ask such refineries to redirect part of their existing stocks to the domestic market. One estimate cited in the report suggests this could potentially release around 300,000 tonnes of sugar locally.

The timing is important because sugar consumption normally increases during the August-November period. Ganesh Chaturthi, Dussehra and Diwali lead to higher demand from households, sweet manufacturers, confectionery businesses and other consumers. With prices already elevated, the government is looking to avoid another sharp increase during the festival season. Officials are also considering changes to ethanol production. Reuters had earlier reported that the government was examining whether less sugarcane should be diverted towards ethanol in the season beginning in October, allowing mills to use more cane for sugar production instead.

A decision to permit imports would mark a notable change in India’s recent sugar policy. The country has often relied on export restrictions and supply-management measures to protect domestic availability and keep prices under control. In May, India extended a ban on sugar exports until September 30, 2026, or until further orders. The latest discussions indicate that the supply situation has changed enough for imports to be considered despite those efforts. India is also the world’s biggest sugar consumer, meaning any substantial purchase from international markets could have an impact beyond the domestic market, potentially supporting benchmark sugar prices in London and New York. The government has not yet taken a final decision, and the exact quantity and terms of any imports remain under discussion.