UPSC Prelims Practice Questions — Govt. allows duty-free import of 10 lakh tonnes of raw sugar
Q1. Under the WTO Agreement on Agriculture, the minimum access opportunities implemented largely through tariff quotas were required to be progressively expanded to what proportion of base-period domestic consumption by the end of the implementation period for developed country Members?
- A. 3 per cent of base-period consumption, a level that was never required to be raised further
- B. 5 per cent of base-period consumption
- C. 8 per cent of base-period consumption
- D. 10 per cent of base-period consumption
Q2. Which one of the following is the principal feature that distinguishes a tariff rate quota from an ordinary quantitative restriction on imports?
- A. Imports beyond the specified quantity are prohibited outright, while imports within the quantity pay a low rate of duty
- B. Imports beyond the specified quantity are permitted, but attract a higher ordinary rate of duty
- C. Imports within the specified quantity attract the higher bound rate, while imports beyond it enter duty-free
- D. The quantity to be admitted is fixed each year by the exporting country, and a uniform duty applies to all imports
Q3. The August 2026 decision permitted raw sugar to be imported at nil duty; but for this exemption, what is the highest rate of customs duty ordinarily applicable to raw sugar imports into India?
- A. 40 per cent
- B. 60 per cent
- C. 100 per cent
- D. 150 per cent
Q4. The duty-free import of 10 lakh tonnes of raw sugar announced in August 2026 was permitted up to which one of the following dates?
- A. 30 September 2026
- B. 15 October 2026
- C. 31 October 2026
- D. 30 November 2026
Q5. With reference to the Sugar (Stockholding Limit of Bulk Consumers) Order, 2026, consider the following:
1. A soft drink manufacturer whose average monthly sugar consumption over the preceding year is not less than 10 tonnes is a 'bulk consumer' for the purposes of the Order.
2. Institutions belonging to State Governments and Union Territory administrations are covered by the Order as institutional bulk consumers.
3. A covered bulk consumer may not hold sugar stocks exceeding 15 days of its consumption requirement.
4. Sweetmeat sellers and food processing units fall within the class of institutional buyers covered by the Order.
Which of the above is/are correctly identified?
- A soft drink manufacturer whose average monthly sugar consumption over the preceding year is not less than 10 tonnes is a 'bulk consumer' for the purposes of the Order.
- Institutions belonging to State Governments and Union Territory administrations are covered by the Order as institutional bulk consumers.
- A covered bulk consumer may not hold sugar stocks exceeding 15 days of its consumption requirement.
- Sweetmeat sellers and food processing units fall within the class of institutional buyers covered by the Order.
- A. 1 and 2 only
- B. 2, 3 and 4
- C. 1, 3 and 4
- D. 1 and 4 only
Q6. The Sugar (Stockholding Limit of Bulk Consumers) Order, 2026 was notified by which one of the following?
- A. The Department of Agriculture and Farmers Welfare, Ministry of Agriculture and Farmers Welfare
- B. The Ministry of Food Processing Industries, which alone regulates all sugar-using industries
- C. The Directorate General of Foreign Trade, Ministry of Commerce and Industry
- D. The Department of Food and Public Distribution, Ministry of Consumer Affairs
Q7. As per official estimates, India's total sugarcane production in 2024-25 was closest to which one of the following?
- A. 294.9 million tonnes
- B. 344.9 million tonnes
- C. 394.9 million tonnes
- D. 444.9 million tonnes
Q8. The Fair and Remunerative Price of sugarcane for a sugar season (October–September) is approved by which authority, and on whose recommendations?
- A. The Cabinet Committee on Economic Affairs, on the recommendations of the Commission for Agricultural Costs and Prices
- B. The Cabinet Committee on Economic Affairs, on the recommendations of the Directorate of Sugar and Vegetable Oils
- C. The Commission for Agricultural Costs and Prices, on the recommendations of the State Advised Price committees
- D. The Department of Food and Public Distribution, on the recommendations of NITI Aayog
Q9. Consider the following statements regarding instruments used by the Government to manage India's sugar economy:
1. In May 2026, the export policy for raw, white and refined sugar was amended from 'restricted' to 'prohibited' by a notification of the Directorate General of Foreign Trade.
2. With effect from August 2026, sugar dealers were subjected to a stock limit of 4,000 quintals and 30 days of stock.
3. Under the Ethanol Blended Petrol Programme, average ethanol blending in petrol reached 20 per cent in 2025-26.
4. Mill-wise monthly sugar release and stock-holding orders are issued under Section 3 of the Sugarcane (Control) Order, 1966.
Which of the statements given above is/are correct?
- In May 2026, the export policy for raw, white and refined sugar was amended from 'restricted' to 'prohibited' by a notification of the Directorate General of Foreign Trade.
- With effect from August 2026, sugar dealers were subjected to a stock limit of 4,000 quintals and 30 days of stock.
- Under the Ethanol Blended Petrol Programme, average ethanol blending in petrol reached 20 per cent in 2025-26.
- Mill-wise monthly sugar release and stock-holding orders are issued under Section 3 of the Sugarcane (Control) Order, 1966.
- A. 1, 2 and 3
- B. 2, 3 and 4
- C. 1 and 4 only
- D. 1, 2, 3 and 4
Q10. For the 2025-26 sugar season, what was the total quantity of sugar exports allowed by the Government before exports were subsequently prohibited?
- A. 10 lakh tonnes
- B. 15 lakh tonnes
- C. 20 lakh tonnes
- D. 25 lakh tonnes
Q11. Consider the following statements about the domestic sugar price situation in 2026:
1. The all-India ex-mill sugar price rose to about ₹5,400–₹5,500 per quintal in mid-August 2026, from about ₹3,900 per quintal a year earlier.
2. Spot ex-mill prices touched a 16-year high of about ₹5,530 per quintal on 19 August 2026.
3. The price surge was caused entirely by the diversion of the whole of the season's cane output to ethanol, domestic sugar production having ceased altogether.
4. Sugar consumption in 2025-26 was estimated at about 28 million tonnes, exceeding net production of about 27.9 million tonnes.
Which of the above is/are NOT correct?
- The all-India ex-mill sugar price rose to about ₹5,400–₹5,500 per quintal in mid-August 2026, from about ₹3,900 per quintal a year earlier.
- Spot ex-mill prices touched a 16-year high of about ₹5,530 per quintal on 19 August 2026.
- The price surge was caused entirely by the diversion of the whole of the season's cane output to ethanol, domestic sugar production having ceased altogether.
- Sugar consumption in 2025-26 was estimated at about 28 million tonnes, exceeding net production of about 27.9 million tonnes.
- A. 1 and 3
- B. 3 only
- C. 2 and 4
- D. 1, 3 and 4
Q12. Amendments to the export policy of sugar and the administration of tariff rate quota allocations for sugar are carried out by which one of the following?
- A. The Central Board of Indirect Taxes and Customs, Department of Revenue, Ministry of Finance
- B. The Directorate General of Foreign Trade, Ministry of Commerce and Industry
- C. The Department of Food and Public Distribution, Ministry of Consumer Affairs
- D. The Agricultural and Processed Food Products Export Development Authority