DGFT issues operational guidelines for TRQ import of 10 lakh MT Raw Sugar and conversion from AA Scheme

The Directorate General of Foreign Trade (DGFT) has, via Public Notice No. 24/2026-2027-DGFT dated 20/08/2026, set out a comprehensive procedure for implementing a Tariff Rate Quota (TRQ) for import of 10 lakh MT of Raw Sugar, as well as a one-time facility to convert eligible Advance Authorisation (AA) licences under SION E52 into TRQ-based imports.

The Public Notice has been issued under the powers in Paragraphs 1.03 and 2.04 of the Foreign Trade Policy, 2015-2020, and links back to Notification No. —/2026-2027 dated — August 2026, which created the TRQ. The framework is designed to ensure that imported Raw Sugar is quickly refined and released into the domestic market within a fixed timeline, while also regularising certain existing Advance Authorisations.

This article explains, in simple and structured form, the eligibility, application procedure, compliances and risks associated with:

  • Allocation of 10 lakh MT TRQ for Raw Sugar imports, and
  • One-time conversion of existing Advance Authorisation (under SION E52) to TRQ Scheme.

1. TRQ allocation for import of 10 lakh MT Raw Sugar

1.1 Who can apply for TRQ?

The TRQ authorisations are restricted to entities that actually refine Raw Sugar within India. Specifically, applications are invited only from:

  • Millers and refiners having their own operational refining facilities for converting Raw Sugar into white/refined sugar.

Only entities with in-house functional refining capacity are eligible; trading entities without refining plants are effectively excluded.

1.2 Application window and mode of filing

Applications are to be submitted only through the DGFT online system within a specified time frame:

  • Application period: From 21.08.2026 to 28.08.2026
  • Portal path: https://dgft.gov.in → Import Management System → Tariff Rate Quota (TRQ)

Manual or offline applications are not permitted. Any filing outside the above window would not be entertained.

1.3 Documents and declarations required

At the time of filing the TRQ application, the assessee must furnish:

  1. Self-declaration of refining capacity – a formal statement on the refining capacity of the unit.
  2. Proof of refining capacity, such as:
    • Copy of the Consent to Operate issued by the relevant State Pollution Control Board, or
    • Any other acceptable document clearly showing the refining capacity of the entity.

The information in the application will be subjected to scrutiny by DGFT. There is a clear warning that misdeclaration can result in:

  • Suspension of IEC, and
  • Penal consequences under the Foreign Trade (Development & Regulation) Act, 1992 and relevant rules/orders.

1.4 Preference in allocation

While all eligible applicants may apply, the Public Notice introduces a preference criterion:

  • Applicants who undertake to complete the import by 15th October 2026 will be given priority during allocation.

This undertaking effectively binds the assessee to faster import execution, which is consistent with the policy intention of augmenting domestic sugar availability by a specific date.

1.5 Role of Exim Facilitation Committee (EFC)

The Exim Facilitation Committee (EFC) will screen and decide on the TRQ applications.