The government may consider more duty-free sugar imports and bringing back stock limits on sugar mills this season if prices continue to rise in the run-up to Diwali. The government is looking at the possibility of allowing duty-free imports barely weeks after it increased the import duty on sugar to 50% from 40%, as prices have started rising. Prices in both retail and wholesale markets are expected to rise again as sugar supplies are tight this season and demand is seen increasing ahead of the festival season. The government had last year made it mandatory for mills to offload sugar from their stocks during Sep-Oct to rein in prices. Mills were allowed to keep only 37% of their total stock at the end of September, and 24% by the end of October, forcing them to offload a higher quantum in the market.