DGFT Allows 10 Lakh MT Duty-Free Raw Sugar Imports!
The Directorate General of Foreign Trade (DGFT) has amended the import policy for Raw Sugar, classified under Exim Code 170114 of Chapter 17 of ITC (HS), 2022.
Through Notification No. 31/2026-2027 dated 20 August 2026, the Government has introduced a Tariff Rate Quota (TRQ) allowing 10 lakh metric tonnes (MT) of raw sugar to be imported duty-free up to 31 October 2026, subject to the conditions specified in the notification.
The notification also provides a one-time conversion option for certain Advance Authorisations issued under SION E-52.
What Has Changed Under the DGFT Notification?
Before this notification, the import policy for Raw Sugar under Exim Code 170114 was listed as Free without the revised TRQ condition.
The revised policy continues to classify imports as Free, but now specifies that imports are subject to a TRQ of 10 lakh MT on a duty-free basis up to 31 October 2026.
Key Policy Change
| Particular | Details |
|---|---|
| Exim Code | 170114 |
| Product | Raw Sugar |
| Import Policy | Free |
| TRQ | 10 lakh MT |
| Duty | Duty-free |
| Validity | Up to 31 October 2026 |
| Authority | DGFT |
One-Time Conversion from Advance Authorisation to TRQ
The notification introduces an additional facility for Advance Authorisations already issued under SION E-52.
Who Can Use the Conversion Option?
Advance Authorisations issued under SION E-52 may be given a one-time option for conversion to the TRQ scheme in respect of the quantity of Raw Sugar actually imported under those Advance Authorisations up to the date of the notification.
This provides a specific mechanism for eligible quantities already imported under the Advance Authorisation framework to be considered under the TRQ scheme.
Conditions for Conversion
The conversion is not unconditional.
The notification specifies that the conversion is subject to payment of the exempted GST availed at the time of import.
In addition, the refined sugar manufactured from the imported Raw Sugar must be sold in the domestic market by 31 October 2026.
Other conditions prescribed by the authorities will also apply.
Note:
Businesses considering the conversion option should review the detailed procedure and conditions prescribed by DGFT before taking action.
DGFT to Specify the Administration Procedure
The notification states that DGFT will specify the procedure for administering:
- The 10 lakh MT TRQ, and
- The one-time conversion from the Advance Authorisation Scheme to the TRQ Scheme
This procedure will be issued through a Public Notice.
Therefore, importers and other affected stakeholders should monitor subsequent DGFT instructions for the operational process.
What This Means for Raw Sugar Importers
The notification provides a defined duty-free TRQ window for Raw Sugar imports up to 31 October 2026.
For businesses operating under the Advance Authorisation framework, the one-time conversion provision is particularly relevant where Raw Sugar has already been imported under Advance Authorisations issued under SION E-52.
However, the benefit is subject to the conditions specified in the notification, including the requirement concerning exempted GST and domestic sale of the resulting refined sugar.
Important Compliance Points
Businesses dealing with Raw Sugar imports should consider the following:
- Verify the applicable Exim Code 170114 classification.
- Check whether the intended import falls within the 10 lakh MT TRQ.
- Note the deadline of 31 October 2026.
- Review eligibility for the one-time Advance Authorisation conversion.
- Account for the requirement to pay the exempted GST availed at import where conversion is undertaken.
- Ensure refined sugar manufactured from imported Raw Sugar is sold in the domestic market by the specified date.
- Monitor the DGFT Public Notice for the detailed administration procedure.
Conclusion
DGFT Notification No. 31/2026-2027 introduces a 10 lakh MT duty-free TRQ for Raw Sugar imports up to 31 October 2026.
The notification also provides a one-time conversion facility from Advance Authorisations issued under SION E-52 to the TRQ scheme for eligible quantities of Raw Sugar actually imported up to the notification date.
Importers and businesses covered by these provisions should carefully review the conditions and await the DGFT Public Notice detailing the operational procedure before proceeding with the relevant benefits.
Notification Reference:
DGFT
Notification No. 31/2026-27
20/08/2026