China relies on imports to meet its country’s sugar needs. According to the reports, China set the 2020 sugar import quota at 1.945 million tonnes.
As per China’s Ministry of Commerce website, out of the total sugar import quota, 70 per cent would be allocated to state-owned firms. The statement states that companies applying for the quota must have processed 600 tonnes and more raw sugar per day in 2018, or sold 450 million yuan ($63.73 million) and more worth of sugar during the year.
Recently, China had signed a memorandum of understanding with India to purchase 50,000 tonnes of raw sugar. Dhampur Sugar Mills would export the quantity to four refineries in China.
China’s domestic sugar industry is struggling to compete with foreign rivals due to higher production costs. Therefore, they urged the country’s Ministry of Commerce to extend to increase tariffs on sugar imports. In a bid to safeguard China’s domestic sugar industry, the country had imposed the tariff on sugar import in the year 2017. Industry bodies in the country claim that some countries are exporting sugar below the cost prices, which has hampered the domestic sugar sector.
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