Government relaxes rules for sugar exports to EU, US

NEW DELHI: Any trader or entity can export sugar to the European Union and the US under the tariff rate quota (TRQ), which entitles shipments to enjoy low tariff.

Earlier, the government had designated Indian Sugar Exim Corporation, formed by two sugar associations ISMA and NFCSF, to export the sweetener to the EU and the US under the TRQ.

TRQ is a quota for a volume of exports that enter the US at low tariffs. After the quota is reached, a higher tariff is applied on additional imports.

"Export of preferential quota sugar to the EU and the USA has been moved from 'STE' (state trading enterprises) to 'Free' regime subject to (certain) conditions," Directorate General of Foreign Trade said in a notification.

Indian Sugar Mill Association (ISMA) Director General Abinash Verma has termed the move as "absolutely wrong".

"This preferential quota money was being utilised by the industry body ISEC for the welfare of the sugar industry only. This change in policy without giving a chance to the industry to explain and ignoring the advice of the food minister will only benefit one or two petty traders. Therefore, on behalf of the industry, I would appeal to the Prime Minister to reverse the decision," he said.

DGFT, on its part, said it will notify the quantity to be exported from time to time and make the prior registration mandatory with it.

Verma said that currently, the quota for the EU is 10,000 tonnes and that for the US 8,000 tonnes.

Furthermore, on organic sugar export, the DGFT said it should be duly certified by Agricultural & Processed Food Products Export Development Authority (APEDA) as being organic sugar and should have a prior online registration from DGFT.