Summary: The Directorate General of Foreign Trade (DGFT), Department of Commerce, Ministry of Commerce & Industry, has issued Public Notice No. 27/2026-2027-DGFT dated 20 August 2026 prescribing the modalities for application and distribution of a Tariff Rate Quota (TRQ) for import of 10 lakh MT of Raw Sugar and providing a one-time conversion facility from the Advance Authorisation (AA) Scheme to the TRQ Scheme. The Public Notice states that it is issued in exercise of powers under Paragraphs 1.03 and 2.04 of the Foreign Trade Policy, 2015-2020.
For allocation of the 10 lakh MT TRQ, applications are invited online from millers and refiners having their own functional capacity to convert raw sugar into white/refined sugar. The application window is from 21 August 2026 to 28 August 2026. Applications are to be submitted through the DGFT Import Management System under Tariff Rate Quota (TRQ). Applicants must furnish a self-declaration of refining capacity supported by a Consent to Operate issued by the State Pollution Control Board or another document evidencing refining capacity.
The details furnished in applications are subject to scrutiny. Misdeclaration may result in suspension of the Importer-Exporter Code (IEC) and penal action under the Foreign Trade (Development & Regulation) Act, 1992 and the rules and orders made thereunder. Preference in allocation is to be given to importers undertaking to complete the import by 15 October 2026. The Exim Facilitation Committee (EFC) will evaluate applications with reference to factors including refining capacity, quantity requested and import history.
After allocation, TRQ holders must submit details of Letters of Credit or confirmed contracts to DGFT within 15 days of obtaining the TRQ authorisation, by filing an amendment application against the authorisation. The allocated quantity must be utilised within the prescribed period. A TRQ holder may surrender unutilised quantity within 15 days of issuance of the TRQ authorisation, subject to payment of an amount equivalent to 0.5% of the CIF value of the surrendered quantity. DGFT may reallocate surrendered quantities. Failure to utilise or surrender the allocation within the prescribed period may result in action under the FT(D&R) Act, including cancellation/reduction of allocation and restriction from future TRQ allocations.
The Public Notice requires imported Raw Sugar to be processed at the TRQ holder’s own facility. For every 1.05 KG of Raw Sugar covered under the TRQ Authorisation, the TRQ holder must produce and sell 1 KG of Refined Sugar in the domestic market by 31 October 2026. Non-compliance may result in action under law, including payment of applicable Customs duty and interest. The Raw Sugar is required to be processed into White/Refined Sugar within a reasonable period after import.
The Public Notice also provides a one-time option for Advance Authorisations already issued under SION E52 to convert to the TRQ Scheme, limited to the quantity of Raw Sugar actually imported under such Advance Authorisations up to the date of the Notification. The conversion includes refined sugar already produced and refined sugar to be produced from imported Raw Sugar available under the Advance Authorisation. The conversion is subject to payment of exempted GST availed at import, domestic sale of the refined sugar by 31 October 2026 and other prescribed conditions. Applicants must file a TRQ application during the same 21 August to 28 August 2026 window and submit the specified Advance Authorisation, GST-payment proof and self-certified statements.
For converted quantities, the 1.05 KG Raw Sugar-to-1 KG Refined Sugar requirement and domestic-sale deadline of 31 October 2026 continue to apply. TRQ holders under the conversion facility must also furnish statements of GST invoices evidencing domestic sales on or before the 1st and 15th day of each month, with the final statement to be submitted by 1 November 2026. Failure to satisfy conversion conditions or furnish prescribed documents may lead to cancellation of the conversion/TRQ Authorisation and further action permissible under law.
DGFT has reserved the right to amend, modify, relax or withdraw any provision of the Public Notice as considered necessary, subject to the Foreign Trade Policy and applicable law.
The supplied material also contains a Corrigendum to Public Notice No. 27/2026-2027 dated 24 August 2026. The Corrigendum substitutes paragraph 7(c) of the original Public Notice. Instead of requiring processing sufficiently in advance for domestic sale by 31 October 2026, the substituted provision states that the importer shall convert the Raw Sugar into White/Refined Sugar and sell it in the domestic market within a period not exceeding two months from the date of filing of the bill of entry. All other terms and conditions of Public Notice No. 27/2026-2027 dated 20 August 2026 remain unchanged.
Government of India
Ministry of Commerce & Industry
Department of Commerce
Directorate General of Foreign Trade
Public Notice No. 27/2026-2027-DGFT | Dated: 20/08/2026
Subject: Modalities for Application and Distribution of TRQ for Import of 10 Lakh MT of Raw Sugar and one-time conversion from Advance Authorisation (AA) Scheme to Tariff Rate Quota (TRQ) Scheme-reg.
F. No. 01/89/180/43/AM-26/PC-2(A)/(E-47338).— In exercise of powers conferred under Paragraphs 1.03 and 2.04 of the Foreign Trade Policy, 2015-2020, the Director General of Foreign Trade hereby prescribes the modalities for operationalisation of the TRQ Scheme for import of Raw Sugar notified vide Notification No. –/2026-2027 dated — August 2026:
Modalities for the allocation of the 10 Lakh MT Tariff Rate Quota (TRQ) for Raw Sugar:
2. The criteria for eligibility and Application process are given as under:
i. Applications for TRQ are invited online from millers and refiners possessing their own functional capacity to convert raw sugar into white/refined sugar. The Application window is from 21.08.2026 till 28.08.2026.
ii. All applications for grant of TRQ authorisations shall be submitted online through the DGFT website (https://dgft.gov.in) –> Import Management System –>Tariff Rate Quota (TRQ)
iii. Applicants must submit a self-declaration of refining capacity, along with supporting evidence of the same in the form of a copy of Consent to Operate issued by the State Pollution Control Board or any other document evidencing the refining capacity of the entity.
iv. The details given in the applications will be subject to scrutiny, and any misdeclaration will entail suspension of IEC and would attract penal action under the Foreign Trade (Development & Regulation) Act, 1992, and the rules and orders made thereunder.
v. Preference in allocation shall be given to the importers who give an undertaking to complete such import by 15th October 2026.
3. The Exim Facilitation Committee (EFC) will evaluate applications taking into consideration various factors, inter alia, the refining capacity of the units and the total quantity requested and history of imports and such other relevant factors as may be deemed necessary.
4. On allocation of quota, the TRQ holders shall submit details of Letter(s) of Credit/confirmed contract to DGFT within 15 days of obtaining the TRQ authorisation. The submissions are to be made by filing an amendment application against the TRQ Authorisation.
5. All TRQ holders shall utilise the allocated TRQ quantity for import within the prescribed period. However, a TRQ holder may surrender any unutilised quantity within 15 days of the date of issue of the TRQ Authorisation, subject to payment of an amount equivalent to 0.5% of the CIF value of the surrendered quantity. Any quantity so surrendered may be reallocated by DGFT.
6. Failure to utilise or surrender the allocated quantity within the prescribed period shall constitute non-compliance with the conditions of the TRQ Authorisation and may, without prejudice to any other action permissible under law, attract action under the FT(D&R) Act, 1992, and the rules and orders made thereunder, including cancellation/reduction of the allocation and restriction from future TRQ allocations.
7. Other Applicable Conditions:
a. All imported Raw Sugar must be processed at the TRQ holder’s own facility.
b. For every 1.05 KG of Raw Sugar covered under the TRQ Authorisation, the TRQ holder shall produce and sell 1 KG of Refined Sugar in the domestic market by 31.10.2026. Failure to comply with the same shall result in such action as may be permissible under law, including payment of applicable Customs duty and interest, as applicable.
c. The Raw Sugar imported under the TRQ shall be processed 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 31 October 2026.
c. The Raw Sugar imported under the TRQ shall be processed into White/Refined Sugar within a reasonable period after import, provided that the importer shall convert the raw sugar into white/refined sugar and sell the same in the domestic market within a period, not exceeding two months, from the date of filing of bill of entry.
Modalities for one-time conversion from Advance Authorisation (AA) Scheme to Tariff Rate Quota (TRQ) Scheme:
1. Advance Authorisations already issued under SION E52 are given a one-time option for conversion from the Advance Authorisation Scheme to the TRQ Scheme in respect of the quantity of Raw Sugar actually imported under such Advance Authorisations up to the date of this Notification.
This will include refined sugar, already produced and to be produced out the imported raw sugar available under the Advance Authorisation.
The conversion is subject to payment of the exempted GST availed at the time of import, condition that the refined sugar manufactured out of the imported Raw Sugar shall be sold in the domestic market by 31.10.2026 and such other conditions as may be prescribed.
2. The AA holders who wish to avail the option to convert from AA to TRQ scheme shall file a TRQ Application through the DGFT website (https://dgft.gov.in) –> Import Management System –>Tariff Rate Quota (TRQ). The Application window is from 21.08.2026 till 28.08.2026.
3. While filing such an application, the AA holder should submit the following:
a. A copy of the valid Advance Authorisation issued for SION E52.
b. A copy of the proof of GST paid against the applied quantity of Raw Sugar proposed for conversion.
c. A self-certified statement indicating the quantity and value of Raw Sugar imported and the quantity and value of Refined Sugar exported against the relevant Advance Authorisation up to the date of the Notification, i.e. — August 2026.
d. A self-certified statement indicating the quantity of Raw Sugar available for processing, after accounting for the quantity already utilised in production/export wherever applicable.
4. For every 1.05 KG of Raw Sugar covered under the TRQ Authorisation, the TRQ holder shall produce and sell 1 KG of Refined Sugar in the domestic market by 31.10.2026. Failure to comply with the same shall result in such action as may be permissible under law, including payment of applicable Customs duty and interest, as per the provisions governing the Advance Authorisation Scheme, wherever applicable.
5. A statement of GST invoices evidencing the domestic sale of Refined Sugar, indicating the quantity of Refined Sugar sold in the domestic market, shall be submitted by the TRQ holders under this scheme on or before the 1st and 15th day of the month, with the final statement to be submitted by 1 November 2026.
6. The refined sugar already produced or subsequently produced from the eligible imported Raw Sugar shall be sold in the domestic market within the prescribed period. Failure to comply with the conditions of conversion or furnish the prescribed documents may result in cancellation of the conversion/TRQ Authorisation and such further action as may be permissible under law.
7. DGFT reserves the right to amend, modify, relax or withdraw any provision of this Public Notice, as may be considered necessary, subject to the Foreign Trade Policy and applicable law.
(Lav Agarwal)
Director General of Foreign Trade &
Ex-officio Addl. Secretary to the Govt. of India
Email: [email protected]
(Issued from File No: 01/89/180/43/AM-26/PC-2(A)/ 1E-473381)
Government of India
Ministry of Commerce & Industry
Department of Commerce
Directorate General of Foreign Trade
Corrigendum to Public Notice No. 27/2026-2027-DGFT | Dated: 24.08.2026
Subject: Corrigendum to Public Notice No. 27/2026-2027 dated 20.08.2026 regarding Modalities for Application and Distribution of TRQ for Import of 10 Lakh MT of Raw Sugar and one-time conversion from Advance Authorisation (AA) Scheme to Tariff Rate Quota (TRQ) Scheme-reg.
In partial modification of Public Notice No. 27/2026-2027 dated 20.08.2026, and in exercise of powers conferred under Paragraphs 1.03 and 2.04 of the Foreign Trade Policy, 2015-2020, the Director General of Foreign Trade hereby makes the following amendment:
2. In Paragraph 7(c) of the said Public Notice, for the existing entry, the following shall be substituted, namely:
Existing:
“c. The Raw Sugar imported under the TRQ shall be processed 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 31 October 2026.”
Substituted by:
“c. The Raw Sugar imported under the TRQ shall be processed into White/Refined Sugar within a reasonable period after import, provided that the importer shall convert the raw sugar into white/refined sugar and sell the same in the domestic market within a period, not exceeding two months, from the date of filing of bill of entry.”
3. All other terms and conditions of Public Notice No. 27/2026-2027 dated 20.08.2026 shall remain unchanged.
(Lay Agarwal)
Director General of Foreign Trade &
Ex-officio Addl. Secretary to the Govt. of India
Email: [email protected]
(Issued from File No: 01/89/180/43/AM-26/PC-2(A)/ [E-473381)
