Raw sugar: 10 lakh MT duty-free TRQ up to 31 October 2026; surrender of unutilised quota now allowed till 15 October 2026 — DGFT Notification No. 31/2026-27 and Public Notices

The import policy change

By Notification No. 31/2026-27 dated 20 August 2026, DGFT amended the import policy condition for raw sugar under Exim Code 170114. Import is “Free” subject to a Tariff Rate Quota (TRQ) of 10 lakh MT, duty-free, up to 31 October 2026. In addition, Advance Authorisations already issued under SION E-52 got a one-time option to convert to the TRQ Scheme for raw sugar actually imported up to the date of the notification.

The documents, in order

Conditions on TRQ holders

• Applicants had to be millers or refiners with their own functional refining capacity, supported by a self-declaration and evidence such as the State Pollution Control Board’s Consent to Operate. Misdeclaration entails suspension of IEC and penal action.
• Details of Letter(s) of Credit or confirmed contract are to be submitted within 15 days of obtaining the TRQ authorisation, through an amendment application.
• All imported raw sugar must be processed at the TRQ holder’s own facility.
• For every 1.05 kg of raw sugar, 1 kg of refined sugar must be produced and sold in the domestic market by 31 October 2026. Failure may attract action including payment of applicable Customs duty and interest.
• Failure to utilise or surrender the allocated quantity within the prescribed period is non-compliance and may lead to cancellation or reduction of the allocation and restriction from future TRQ allocations.

Balance quantity

Against 10,00,000 MT, applications for 7,97,450 MT were received and allocated, as recorded in the Committee’s minutes of 28 August 2026. For the balance 2,02,550 MT, applications received up to 5:30 PM form one batch for the day and are processed on the following working day. If demand exceeds the balance, allocation is pro-rata within that batch; applications on later days are not considered.

Conversion from Advance Authorisation

Conversion is subject to payment of the exempted GST availed at the time of import and sale of the refined sugar in the domestic market by 31 October 2026. The holder files a TRQ application with a copy of the Advance Authorisation, proof of GST paid, and self-certified statements of raw sugar imported, refined sugar exported and raw sugar available for processing. A statement of GST invoices for domestic sales is due on or before the 1st and 15th of the month, with the final statement by 1 November 2026.

What TRQ holders should do now

• If you cannot use part of your allocation, surrender it by 15 October 2026 and pay 0.5% of the CIF value of the surrendered quantity. Surrendered quantity may be reallocated by DGFT.
• Plan processing so that the refined sugar is sold in the domestic market by 31 October 2026.
• Converted Advance Authorisation holders: file the periodic sale statements and the final statement by 1 November 2026.