New Delhi, Aug. 20 -- India, the world's second-biggest sugar producer, has allowed mills and refiners to import duty-free raw sugar in an effort to tame record local prices.

The government will allow imports of as much as 1 million tons of raw sugar until Oct. 31 free of any taxes, according to a notice from the commerce ministry on Thursday. Inbound shipments currently face a levy of 100%.

Only companies with in-house refining capacity will be eligible to import the commodity, the ministry said, adding that mills and refiners can apply between Aug. 21 and Aug. 28.

Raw sugar futures in New York surged as much as 4.1% on Thursday to the highest since April 2025.

The move stands to tighten world supplies and marks a rare step by the co...