India enjoys duty-free sugar exports up to 10,000 tonnes annually under the preferential quota regime.
The government on Friday allowed the export of 8,424 tonnes of raw or white sugar to the US under the tariff-rate quota (TRQ), which enables shipments to enjoy relatively lower tariffs.
TRQ is a quota for export volumes that enter the US at relatively low tariffs. After the quota is met, a higher tariff is applied on additional imports.
“The quantum of 8,424 tonnes of sugar (raw and/or white sugar) to be exported to the US under the TRQ scheme from October 1 to September 30, 2022 has been notified,” the Directorate General of Foreign Trade (DGFT) said. a public notice.
India enjoys duty-free sugar exports up to 10,000 tonnes annually under the preferential quota regime.
India, the world’s second largest producer and largest consumer of sugar, also has a preferential quota arrangement for sugar exports with the European Union.
The country’s sugar exports grew 20% to 7.1 million tonnes in the 2020-21 marketing year ended last month, due to better demand and financial support from the government.
Sugar exports stood at 5.9 million tonnes in the 2019-20 marketing year.
According to ISMA, sugar production in the marketing year 2021-22 is estimated to be 31 million tonnes.
The total availability of sugar is estimated to reach 39.5 million tonnes, including an initial stock of 8.5 million tonnes of sweetener.
.