The Indian government has permitted additional export of 2,051 tonnes of raw sugar under the tariff-rate quota (TRQ) to America for the US fiscal year ending September 30, 2022, the Directorate General of Foreign Trade (DGFT) said in a notification.
With 8,424 tonnes already allocated in October 2021, the total quantity allocated for US fiscal year 2022 would now stand at 10,475 tonnes. “Additional quantity of 2,051 tonnes of raw sugar, for export to the US, under TRQ up to September 30, 2022, has been notified,” said DGFT.
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 for additional imports.
As per the DGFT, the TRQ is a mechanism that allows a set quantity of specific products to be imported. These specific items are as per the particular custom notification associated with it. Tariff quotas are used on a wide range of products, but mostly in the agriculture sector.
Cereals, meat, fruit and vegetables, and dairy products are the most common, and sugar is also protected in most producing countries.
India, the world’s second-biggest producer and the largest consumer of sugar, has a preferential quota arrangement for sugar export with the European Union as well.
Early in May, the government had announced the production of sugar this year was estimated at 355 lakh tonnes against last year’s 310 lakh tonnes. With the carry forward stock from last year (2021-22) at 85 lakh tonnes, the total availability is pegged at 440 lakh tonnes, compared to 420 lakh tonnes last year.
The government also said that 95-100 lakh tonnes is projected to be sent for exports this year.