NEW DELHI: The government on Friday permitted export of additional 745 tonne raw sugar under its 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. "Additional quantity of 745 MTRV (metric tonne raw value) of raw cane sugar, for export to the USA, under TRQ, up to September 30, 2020 has been notified," Directorate General of Foreign Trade (DGFT) said in a public notice.
With this additional quantity, India has permitted exports of 9,169 tonne of raw sugar to the US under TRQ during US fiscal year 2020. 8,424 tonne was permitted up to September 3, 2019. US fiscal year runs from October to September.
India enjoys duty-free sugar exports to the US for up to 10,000 tonnes annually under 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.
According to Indian Sugar Mills Association (ISMA) , the country has manufactured 21.58 million tonnes of sugar till March 15 of the ongoing 2019-20 season (October-September), lower than 27.36 million tonnes in the year-ago period.
Sugar production in Maharashtra -- the country's largest sugar producing state -- fell to 5.58 million tonnes till March 15, as against 10.08 million tonnes in the same period last year. However, production in Uttar Pradesh, the country's second largest sugar producing state, rose to 8.71 million tonnes so far when compared to 8.41 million tonne a year ago.
India has exported 28.68 lakh tonne of sugar so far in the current marketing year ending September on the back of assistance offered by the government to boost shipments, according to All India Sugar Trade Association (AISTA).
India exported sugar to 58 countries, but 65 per cent of the total shipments were to Iran, Somalia, Malaysia, Sri Lanka and Afghanistan. The country had exported 38 lakh tonne during the 2018-19 marketing year.
According to the food ministry, the sugar production is estimated at 273 lakh tonne in 2019-20 as against domestic consumption of 260 lakh tonnes. In the previous year, sugar output was 331 lakh tonne as compared to 259 lakh tonne domestic demand.