In a noteworthy development, the Indian government has officially announced the export of 8,606 tonnes of raw cane sugar to the United States under the tariff rate quota (TRQ) scheme. This announcement, made on January 3, 2024, comes as India, the world’s second-largest sugar producer and the largest consumer, leverages its preferential quota arrangement for sugar export with the US.
The Directorate General of Foreign Trade (DGFT) issued a notification detailing the export of 8,606 MT raw sugar to the US under the TRQ scheme for the period between October 1, 2023, and September 30, 2024. The quota operation will be managed by the Agricultural and Processed Food Products Export Development Authority (APEDA), as stated in the DGFT notification.
The export, allocated for the US fiscal year 2024, emphasizes India’s commitment to facilitating the international trade of sugar while adhering to the regulations governed by TRQs. The TRQ mechanism allows a predetermined quantity of specific products, in this case, raw cane sugar, to be imported into the US under a low tariff.
For the certification process, the DGFT notification specifies that the Certificate of Origin, if required, for preferential sugar export to the USA, will be issued by the Additional Director General of Foreign Trade, Mumbai, based on the recommendations of APEDA. Other certification requirements specifically outlined for sugar export to the USA will continue to be followed.
This move is expected to bolster India’s standing in the global sugar market while furthering its commitment to international trade protocols, particularly in the realm of agricultural products.
