DGFT Opens Daily Allocation of Balance Raw Sugar Import Quota

What changed: The Directorate General of Foreign Trade (DGFT) has reopened applications for the unallocated balance of India's duty-free raw sugar Tariff Rate Quota (TRQ), via Public Notice No. 28/2026-27 dated 1 September 2026. Against the 10 lakh MT TRQ notified in August 2026, applications for 7,97,450 MT were already received and allocated, leaving roughly 2,02,550 MT available. That balance is now allocated on a daily, first-processed basis for eligible sugar mills and refiners.

What Happened

Facing a firmer domestic sugar-supply and price outlook, the government opened a duty-free import window of up to 10 lakh MT of raw sugar under a TRQ mechanism. A TRQ lets a specified quantity enter at a concessional (here, zero) import duty; volumes beyond the quota attract the normal higher tariff. The first allocation round absorbed most of the quota; this public notice sets out the modalities for the leftover ~2,02,550 MT.

Under the new modalities, allocation shifts from a single bidding round to a rolling daily process: applications received up to a specified daily cut-off (reported as 5:30 PM) are treated as one batch and processed for allocation on the next working day, until the balance quantity is exhausted. This keeps the window responsive rather than requiring importers to wait for another bulk tender.

Who Benefits

Sugar mills and refiners eligible under the scheme who can import and process raw sugar; their financiers and logistics providers; and, indirectly, downstream food and beverage manufacturers and consumers if additional supply steadies domestic prices. Note this is an import facilitation — separately, DGFT has kept sugar exports prohibited through the relevant period, so the two policy levers are pulling in opposite directions to prioritise domestic availability.

Why This Matters

For importers, duty-free access materially changes the landed cost of raw sugar and the economics of refining for the domestic market. Because the balance is finite and allocated daily until exhausted, timing and application readiness matter — the quota can close once the ~2,02,550 MT is taken up. Missing the window means importing at full duty. The daily mechanism rewards mills that have their eligibility, documentation and financing lined up in advance.

What Importers Should Do Now

• Confirm eligibility as a mill/refiner under the scheme's stated criteria before applying.
• Prepare the application package and submit through the prescribed DGFT channel ahead of the daily cut-off to fall into the earliest batch.
• Plan the import logistics — vessel nomination, port handling and refining slots — against the TRQ's validity and any import-completion timeline.
• Track the running balance; allocation continues only until the ~2,02,550 MT is exhausted.
• Model landed cost both ways (duty-free within TRQ vs. full-duty outside it) so you don't over-commit beyond your allocated quantity.
• Read Public Notice No. 28/2026-27 for the exact modalities, cut-off, eligibility and completion conditions.

The Bigger Picture

The raw-sugar TRQ is a textbook use of trade policy for price management: open a controlled, duty-free import channel to supplement domestic supply while keeping exports shut to protect availability. For the trade, it is a reminder that TRQs are time- and volume-bound instruments — the benefit exists only inside the quota and the window. Commodity importers who monitor DGFT public notices closely can capture concessional access that competitors miss.

Frequently Asked Questions

What is a Tariff Rate Quota (TRQ)? A TRQ allows a set quantity of a good to be imported at a lower (here, zero) duty; quantities above the quota face the standard tariff.

How is the balance quantity allocated now? On a daily basis — applications up to the daily cut-off form one batch, processed for allocation the next working day, until the balance is exhausted.

Can I still export sugar under this? No. This is an import window. Sugar exports have separately been kept prohibited to protect domestic supply; verify the current export status before making any export plans.

Where is the authoritative text? DGFT Public Notice No. 28/2026-27 dated 1 September 2026, available on the DGFT website.

Conclusion

DGFT has reopened the balance of the duty-free raw sugar TRQ on a daily-allocation basis. Eligible mills and refiners should confirm eligibility, prepare applications, and apply early — the ~2,02,550 MT is limited and the window closes on exhaustion.

This summary is for general guidance. Verify eligibility, quantity, cut-off and completion terms against DGFT Public Notice No. 28/2026-27 before importing.