India will allow duty-free imports of 1 million metric tons of raw sugar as the government seeks to bring down record-high prices that have squeezed consumers, commerce ministry said on Thursday.

The move comes as the government seeks to bring down record-high prices that have squeezed consumers.

Under the new arrangement, the centre now allows for the imports between now and October 31, ahead of India’s festival season when demand for sugar in the world’s biggest sugar consumer peaks because of demand for cakes and sweets.

Sugar prices in India have risen by nearly 40% in two months as lower production has tightened supplies, forcing India to import sugar for the first time in nearly a decade.

Increased Indian imports are likely to support benchmark prices in London and New York.

The Directorate General of Foreign Trade, or DGFT, on Thursday amended the import policy for raw sugar to permit the imports under a Tariff Rate Quota, or TRQ.

Under a TRQ, a specified quantity can be imported at a lower or zero customs duty. The latest notification limits the duty-free window to 10 lakh tonnes and keeps it open until October 31, 2026.

Centre had already imposed stockholding limits on sugar dealers from August 1 to November 30, saying the measure was intended to curb hoarding and speculative trading and maintain supplies at reasonable prices.

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