The government has allocated an additional quantity of 303 MT of raw sugar for export to USA under Tariff Rate Quota (TRQ) for the Fiscal Year 2021. The Director General of Foreign Trade (DGFT) has issued a notification in this regard.
According to the notification, in exercise of the powers conferred under Paragraphs 2.04 of the Foreign Trade Policy, 2015-2020, the Director General of Foreign Trade hereby allocates an additional quantity of 303 MT raw sugar for export under Tariff Rate Quota to USA for fiscal year 2021 (October 1, 2020 to December 31, 2021).
TRQ is for a volume of exports that enter the US at relatively low tariffs. And higher tariffs are imposed after the quota is reached.
Earlier, the Indian government had permitted the export of 8,424 tonnes of sugar to the US under the TRQ.
According to a report released by the Indian Sugar Mills Association (ISMA) on November 17, 2021, as per port information and market reports, about 25 lakh tonnes of contracts for export of sugar have already been entered into so far. Out of this, about 2.7 lakh tonnes of sugar have been physically exported out of the country in the month of October,21 as compared to 1.96 lakh tonnes exported in the corresponding month last year. It is also reported that another over 2 lakh tonnes of sugar is in pipeline to be physically exported in November 2021.