"Government permits duty-free sugar imports to curb rising domestic prices"
Tariff Rate Quota (TRQ)
a two-tier import tool: lower/zero duty within a set volume, standard duty beyond it.
Ex-mill price
the price at which a sugar mill sells refined sugar, before transport and retail margins.
India is the world's largest producer and one of the largest consumers of sugar. The sugar sector is heavily regulated. The government controls sugarcane pricing through the Fair and Remunerative Price (FRP), which mills must pay farmers. States may additionally set a State Advised Price (SAP), which is often higher. Sugar mills, in turn, sell refined sugar in a market where the government can intervene through export controls, import duties, and stockholding limits.
India's standard import duty on raw sugar is 100 per cent, making imports commercially unviable under normal conditions. When domestic prices spike, the government uses two main tools: reducing or eliminating import duties (often through a Tariff Rate Quota mechanism), and imposing stockholding limits on traders and bulk consumers to prevent hoarding. The Directorate General of Foreign Trade (DGFT) administers import policy notifications, while the Food Ministry oversees stockholding orders under the Essential Commodities Act, 1955.
The sugar season in India runs from October 1 to September 30. Opening stocks at the start of a new season are a critical indicator of price stability. When opening stocks fall below the estimated domestic requirement, prices tend to rise sharply — especially during the festival season (August to November), when demand for sugar-intensive sweets and beverages peaks.
A Tariff Rate Quota (TRQ) is a two-tier trade instrument. Imports within the quota volume attract a lower (or zero) duty. Imports beyond the quota face the standard (higher) duty. TRQs allow governments to manage import volumes precisely — they can open a specific quantity to duty-free or concessional entry without fully liberalising the market. India has used TRQs for edible oils, pulses, and now sugar.
The DGFT issues TRQ notifications and sets eligibility criteria. For this sugar TRQ, only millers and refiners with their own functional refining capacity can apply. Applicants must submit a self-declaration of refining capacity and a copy of the Consent to Operate issued by the State Pollution Control Board. …
Consider the following statements :
1.The quantity of imported edible oils is more than the domestic production of edible oils in the last five years.
2.The Government does not impose any customs duty on all the imported edible oils as a special case.
Which of the statements given above is/are correct?
Consider the following statements:
Statement-I:
India does not import apples from the United States of America.
Statement-II:
In India, by law, the import of genetically modified transformed food is prohibited without the approval of the competent authority.
Which one of the following is correct in respect of the above statements?
With reference to the Tariff Rate Quota (TRQ) mechanism used in India's agricultural import policy, consider the following statements:
1.Imports within the TRQ volume attract a lower or zero duty, while imports beyond the quota face the standard tariff.
2.TRQs are administered exclusively by the Ministry of Agriculture and Farmers' Welfare.
3.India has used TRQs for commodities such as edible oils, pulses, and sugar.
Which of the statements given above is/are correct?
The Sugar (Stockholding Limit of Bulk Consumers) Order, 2026 was issued under which of the following legal instruments?
Which of the following best describes the eligibility criterion for applying for the Tariff Rate Quota (TRQ) for raw sugar imports announced in August 2026?
Assertion (A): The government imposed stockholding limits on bulk sugar consumers alongside allowing duty-free imports under a Tariff Rate Quota.
Reason (R): Stockholding limits prevent speculative hoarding, which can amplify price spikes even when additional supply is being made available through imports.
Which one of the following is correct?
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