India permits export of 8,587 tonne raw sugar to US under TRQ

New Delhi, Apr 8. The government has permitted export of 8,587 tonne raw sugar under its tariff-rate quota (TRQ) to the US, which enables shipments to enjoy relatively low tariff. The 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 is applied on additional imports. "8,587 MTs of raw cane sugar is permitted to be exported to USA under TRQ by M/s. Indian Sugar Exim Corporation Ltd," Directorate General of Foreign Trade (DGFT) said in a public notice. India enjoys duty-free sugar exports to the US for up to 10,000 tonne annually under ‘preferential quota’ arrangement. India, the world’s second biggest producer but largest consumer of sugar, has a preferential quota arrangement for sugar export with the European Union as well. As per estimates, the output in the 2012-13 marketing year (October-September) would be 23-23.5 million tonne, against about 26 million tonnes in the previous year. The country's annual domestic demand is 22 million tonne. India exported about 3.5 million tonne of the sweetener in the last marketing year. (BS Hindi)