The Directorate General of Foreign Trade (DGFT), Department of Commerce, Ministry of Commerce & Industry, Government of India, has notified detailed modalities for the application and distribution of Tariff Rate Quota (TRQ) for import of 10 lakh metric tonnes (MT) of Raw Sugar, along with a one-time facility for conversion from the Advance Authorisation (AA) Scheme to the TRQ Scheme.
The modalities have been prescribed through Public Notice No. 24/2026-2027 dated 20 August 2026, issued in exercise of powers conferred under Paragraphs 1.03 and 2.04 of the Foreign Trade Policy, 2015-2020. The Public Notice operationalises the TRQ mechanism for import of Raw Sugar under the relevant Government notification issued in August 2026.
Applications for TRQ open from 21–28 August 2026
Under the prescribed modalities, online applications for allocation of the Raw Sugar TRQ have been invited from millers and refiners having their own functional capacity to convert raw sugar into white/refined sugar. The application window will remain open from 21 August 2026 to 28 August 2026.
Applications for grant of TRQ authorisation are required to be submitted online through the DGFT website under the Import Management System – Tariff Rate Quota (TRQ). Applicants will also be required to furnish a self-declaration regarding their refining capacity along with supporting evidence, including a copy of the Consent to Operate issued by the State Pollution Control Board or any other document establishing the refining capacity of the applicant.
DGFT has stipulated that information furnished in the applications will be subject to scrutiny. Any misdeclaration may lead to suspension of the Importer Exporter Code (IEC) and penal action under the Foreign Trade (Development and Regulation) Act, 1992, along with the applicable rules and orders.
Preference to importers completing imports by 15 October 2026
While allocating the quota, preference will be given to importers who undertake to complete the import of Raw Sugar by 15 October 2026.
The Exim Facilitation Committee (EFC) will evaluate the applications taking into consideration factors including the refining capacity of the units, the quantity sought by applicants, their import history and other relevant considerations.
Upon allocation of the quota, TRQ holders will be required to submit details of the Letter(s) of Credit or confirmed contracts to DGFT within 15 days of obtaining the TRQ authorisation by filing an amendment application against the authorisation.
Unutilised TRQ quantity may be surrendered and reallocated
TRQ holders will be required to utilise their allotted quantity for import within the prescribed period. However, an authorisation holder may surrender any unutilised quantity within 15 days from the date of issue of the TRQ authorisation, subject to payment of an amount equivalent to 0.5 per cent of the CIF value of the surrendered quantity.
Any quantity surrendered by a TRQ holder may subsequently be reallocated by DGFT.
Failure to either utilise or surrender the allotted quantity within the prescribed period will constitute non-compliance with the conditions of the TRQ authorisation. Such cases may attract action under the FT(D&R) Act, 1992, including cancellation or reduction of allocation and restriction from future TRQ allocations.
Imported Raw Sugar to be processed at TRQ holder’s own facility
The Public Notice further provides that all Raw Sugar imported under the TRQ must be processed at the TRQ holder’s own facility.
For every 1.05 kg of Raw Sugar covered under the TRQ authorisation, the holder is required to produce and sell 1 kg of Refined Sugar in the domestic market by 31 October 2026.
The imported Raw Sugar must accordingly be converted into white/refined sugar within a reasonable period after import and, in any event, sufficiently in advance to enable its sale in the domestic market by the stipulated deadline of 31 October 2026.
Non-compliance with these conditions may invite action permissible under law, including payment of applicable Customs duty and interest, wherever applicable.
One-time conversion from Advance Authorisation to TRQ Scheme
As an additional facilitation measure, the Government has provided a one-time option for conversion of Advance Authorisations already issued under SION E52 from the Advance Authorisation Scheme to the TRQ Scheme.
The conversion will be available in respect of the quantity of Raw Sugar actually imported under such Advance Authorisations up to the date of the relevant Government notification. The facility will cover refined sugar already produced as well as refined sugar yet to be produced from the imported Raw Sugar available under the Advance Authorisation.
The conversion will be subject to payment of the exempted GST availed at the time of import. Further, refined sugar manufactured from such imported Raw Sugar will have to be sold in the domestic market by 31 October 2026, subject to the prescribed conditions.
AA holders to apply during 21–28 August 2026
Advance Authorisation holders seeking the one-time conversion facility will be required to submit their applications through the DGFT website under the Import Management System – Tariff Rate Quota (TRQ) during the same application window, i.e. 21 August 2026 to 28 August 2026.
Such applicants are required to submit, inter alia, a copy of the valid Advance Authorisation issued for SION E52, proof of GST paid against the quantity of Raw Sugar proposed for conversion, and self-certified statements indicating the quantity and value of Raw Sugar imported, Refined Sugar exported against the relevant Advance Authorisation and the balance quantity of Raw Sugar available for processing after accounting for quantities already utilised.
Domestic sale and reporting requirements
For Raw Sugar brought under the converted TRQ authorisation, the same conversion norm will apply: 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.
TRQ holders availing the conversion facility will also be required to submit a statement of GST invoices evidencing domestic sale of Refined Sugar, indicating the quantity sold in the domestic market. Such statements are to be furnished on or before the 1st and 15th day of the month, with the final statement to be submitted by 1 November 2026.
Refined sugar already produced, or subsequently produced from eligible imported Raw Sugar, must be sold in the domestic market within the prescribed period. Failure to comply with the conditions of conversion or to furnish the prescribed documents may result in cancellation of the conversion/TRQ authorisation and further action as permissible under law.
The DGFT has also reserved the right to amend, modify, relax or withdraw any provision of the Public Notice, as may be considered necessary, subject to the Foreign Trade Policy and applicable law.
The Public Notice can be accessed at: https://a2ztaxcorp.net/wp-content/uploads/2026/08/PN-Eng.pdf
