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 move marks a rare departure from India's usual protectionist stance on sugar trade. By removing import duties, the government aims to ease supply constraints and bring down retail prices that have surged due to tight domestic availability.

Sugar prices in India have reached unprecedented levels, driven by a combination of below-normal monsoon rainfall affecting sugarcane yields and strong demand from the confectionery and beverage sectors. The duty-free import policy is expected to provide immediate relief to consumers while supporting the processing industry's operational costs.

This decision reflects India's proactive approach to managing food inflation, leveraging its position as a major agricultural producer to stabilize domestic markets. Industry experts predict the policy could attract significant overseas shipments, particularly from Brazil and Thailand, potentially easing price pressures through the upcoming harvest season.