The government on Friday permitted export of 8,424 tonnes of raw or white sugar under tariff-rate quota (TRQ) to the US, which enables shipments to enjoy relatively low tariff.
TRQ is a quota for a volume of exports that enter the US at relatively low tariffs. After the quota is reached, a higher tariff applies on additional imports.
“The quantity of 8,424 tonnes of sugar (raw and/or white sugar) to be exported to the US under TRQ scheme from October 1 to September 30, 2022, has been notified,” the Directorate General of Foreign Trade (DGFT) said in a public notice.
India enjoys duty-free sugar exports to the US for up to 10,000 tonnes annually under the preferential quota arrangement.
India, the world’s second biggest producer and the largest consumer of sugar, has a preferential quota arrangement for sugar export with the European Union as well.
The country’s sugar export rose 20 per cent to an all-time high of 7.1 million tonnes in the 2020-21 marketing year ended last month, on the back of better demand and financial assistance from the government.
Sugar exports stood at 5.9 million tonnes in the marketing year 2019-20.
According to ISMA, the sugar production is estimated to remain flat at 31 million tonnes in the marketing year 2021-22.
The total availability of sugar is estimated to touch 39.5 million tonnes, including an opening stock of 8.5 million tonnes of sweetener.
The above news was originally posted on www.dailypioneer.com
