The Indian government has granted permission for the additional export of 3,569 tonnes of raw and refined sugar under the tariff-rate quota (TRQ) to the US.
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 to additional imports.
“Additional quantity of 3,569 tonnes of raw cane sugar and refined sugar for export to the US, under TRQ up to September 30, 2020, has been notified,” Directorate General of Foreign Trade (DGFT) stated in a public notice.
Additionally, it was also mentioned that with this quantity, the total sugar export to the US under TRQ during US fiscal year 2020 would be 12,738 tonnes.
Directorate General of Foreign Trade (DGFT) organisation is an attached office of the Ministry of Commerce and Industry that is headed by Director General of Foreign Trade.
India has a preferential quota arrangement for sugar export with the European Union as well.
In addition to the EU, sugar exports from India have gained momentum over the year, due to a strong demand from Indonesia and Iran, increasing exporters’ margins from overseas sales.
India became the world’s largest sugar producer in 2018-2019, surpassing Brazil for the first time in 16 years.
It is now the second largest producer, while being the largest consumer of sugar in the world.