India to Export 8,606 Metric Tonnes of Sugar to the US in 2025
India has allocated 8,606 metric tonnes of sugar to be exported to the US under the Tariff Rate Quota (TRQ) scheme for the fiscal year 2025, according to a notification from the Directorate General of Foreign Trade (DGFT).
The export of sugar (HS Code 17010000) to the US and EU under TRQ is currently ‘Free’, subject to certain conditions. A Certificate of Origin, if required, for preferential export of sugar to the USA will be issued by the Additional Director General of Foreign Trade, Mumbai, based on recommendations from the Agriculture and Processed Food Products Export Development Authority (APEDA).
The DGFT notification stated, “The quantity of 8606 Metric Tonnes Raw Value (MTRV) of raw cane sugar to be exported to USA under TRQ scheme from 01.10.2024 to 30.09.2025 has been notified.”
A tariff rate quota is a quota for exports at relatively low duties. Once the limit is exhausted, a higher tariff applies to additional shipments.
India had extended the restrictions on the export of sugar until further orders in October last year. Initially, the restrictions were imposed starting June 1 to October 31, 2022, and later extended by a year till October 31, 2023. However, these restrictions do not apply to sugar being exported to the EU and the US under the concession (CXL) and TRQ quota. The initial idea behind the sugar export restriction was to stabilize domestic sugar prices.
Doubts Revealed
Metric Tonnes -: A metric tonne is a unit of weight that is equal to 1,000 kilograms. It’s a way to measure large quantities of things like sugar.
Tariff Rate Quota (TRQ) -: A Tariff Rate Quota (TRQ) is a trade policy tool that allows a set amount of a product to be imported at a lower tax rate. Once that amount is reached, higher taxes apply.
Fiscal Year -: A fiscal year is a 12-month period used for budgeting and financial purposes. It can start in any month, not just January.
Directorate General of Foreign Trade (DGFT) -: The DGFT is a government agency in India that helps manage and promote international trade. They make rules about what can be imported and exported.
Certificate of Origin -: A Certificate of Origin is a document that proves where a product was made. It’s important for international trade to show that the product comes from a specific country.
Additional Director General of Foreign Trade, Mumbai -: This is a high-ranking official in the DGFT office in Mumbai. They help oversee and manage trade activities in that region.
Agriculture and Processed Food Products Export Development Authority (APEDA) -: APEDA is an Indian government agency that helps promote the export of agricultural and processed food products. They support farmers and food producers in selling their products abroad.
