DGFT Extends Duty-Free Raw Sugar Import Window to 31 December 2026

The Directorate General of Foreign Trade (DGFT) has given raw sugar importers two more months to bring in their approved quota. Under Notification No. 45/2026-27, dated 19 October 2026, the window for duty-free imports of raw sugar under the 10 lakh MT (one million tonne) Tariff Rate Quota (TRQ) has been extended from 31 October 2026 to 31 December 2026. The quota size, the zero rate of duty and the product coverage are all unchanged — only the last date to import has moved.

For mills, refiners and sugar traders holding TRQ allocations, this removes the immediate risk that in-transit consignments would miss the original 31 October cut-off and lose their duty-free status.

What Happened

In August 2026, the government opened a duty-free TRQ of 10 lakh MT for raw sugar (Exim Code 170114, Chapter 17 of the ITC(HS)) to cool record domestic prices, with imports to be completed by 31 October 2026. With a large part of that quota still at sea or awaiting clearance, DGFT has now pushed the import deadline out to 31 December 2026. According to trade reports, the notification states that all other conditions specified in the original August notification remain unchanged, and the extension creates no new allocation and no increase in quota quantity.

Separately, trade sources indicate DGFT has also extended the deadline for surrendering unutilised TRQ quantity (to around mid-November 2026). Quota holders should confirm the exact surrender date and the 0.5% CIF surrender charge from the operative public notice before acting on it.

Why / Background

Raw sugar typically ships to India from origins such as Brazil, and a single voyage can take roughly 40–45 days from the point of approval to arrival, before port handling and customs clearance. Refiners had flagged that the fixed 31 October date was difficult to meet because of vessel scheduling, port congestion and clearance timelines. A consignment that physically arrived or cleared a day after the deadline would have faced full customs duty rather than the TRQ's zero rate — a significant cost swing on bulk cargo. Extending the window to 31 December protects shipments already contracted and financed against that timing risk.

Who's Affected

Sugar mills and refiners holding TRQ allocations who still have quota to import.
Importers and traders with raw sugar afloat or contracted for late-2026 delivery.
Customs House Agents (CHAs) filing bills of entry for raw sugar under the TRQ.
Banks and trade financiers funding these consignments, whose duty exposure assumptions now change.

Operational Detail

The TRQ continues to allow duty-free import of raw sugar up to the 10 lakh MT ceiling, classified under Exim Code 170114. Imports must still be made by eligible entities against their allocated quota and routed through the DGFT Import Management System TRQ module as before. The only substantive change in this notification is the revised end date of the import window: 31 December 2026 in place of 31 October 2026. Conditions attached to the original scheme — including domestic sale/processing obligations and any GST repayment conditions for Advance Authorisation conversions — should be read from the underlying August notification and associated public notices, as they are not altered by this extension.

What Sugar Importers and Refiners Should Do Now

Re-plan shipment and clearance schedules against the new 31 December 2026 import deadline, but build in a buffer — the date is the last date to import, not to contract.
Confirm your remaining unutilised quota and decide whether to use or surrender it before the surrender deadline; factor in the 0.5% CIF surrender charge if you surrender.
Brief your CHA so bills of entry for in-transit consignments correctly claim the TRQ (zero) duty under Exim Code 170114.
Keep documentation (allocation letter, contract, bill of lading, invoice) aligned so clearance is not held up on the TRQ claim.
Verify the exact notification text and any linked public notice on the DGFT portal before relying on secondary summaries.

The Bigger Picture

The extension is a pragmatic, administrative step rather than a policy shift: the government is protecting the supply-side objective of the original intervention — bringing in sugar to ease domestic prices — by making sure logistics delays do not strand duty-free cargo. It signals continued official attention to domestic sugar availability and price stability into the 2026-27 season. Importers should treat the duty-free window as finite and tied to this quota, not as a standing concession.

Frequently Asked Questions

Does this increase the 10 lakh MT quota? No. The quota quantity is unchanged. Only the last date to import under it has moved to 31 December 2026.

Is the duty still zero? Yes. Imports within the TRQ allocation continue to be duty-free. Imports outside the quota remain subject to the applicable customs duty.

What product classification does it cover? Raw sugar under Exim Code 170114 (Chapter 17 of the ITC(HS)).

I have quota I cannot use. What are my options? You may surrender unutilised quantity by the surrender deadline, subject to the prescribed charge (reported at 0.5% of the CIF value of the surrendered quantity). Confirm the current surrender date from the operative public notice.

Where is the official source? DGFT Notification No. 45/2026-27 and related public notices, available on the DGFT portal.

Conclusion

DGFT's two-month extension of the duty-free raw sugar import window to 31 December 2026 is a timely relief for refiners and importers racing against shipping timelines. The substance of the scheme is unchanged; only the clock has been reset. Quota holders should re-plan now, use or surrender quota deliberately, and verify every date against the official notification.

This summary is for general guidance only. Importers should rely on the full text of DGFT Notification No. 45/2026-27 and associated public notices on the official DGFT portal (dgft.gov.in) before making commercial or clearance decisions.