Government relaxes norms for sugar exports to EU, US

NEW DELHI: With government relaxing norms, any trader or entity can export sugar to the European Union and the US under quota systems, 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 under CXL quota and the US under the TRQ quota.

Under these quotas, exports are permitted on low tariffs. After the quota is reached, a higher tariff is applied on additional exports.

"The preferential quota sugar to EU was being exported STE ( State Trading Enterprises) subject to quantitative ceiling notified by DGFT from time to time.

However, with a view to extend the benefits of export of preferential quota sugar to EU to the entire sugar industry in the country, the government has now decided to liberalise the export policy," the commerce ministry said in a statement.

And for the exports to the US also, the government has relaxed the norms.

"The preferential quota sugar to USA was being exported through STE subject to quantitative ceiling notified by DGFT from time to time. However, the government has now decided to change the export policy...from 'STE' to "Free" regime subject to quantitative ceiling notified by DGFT from time to time," it added.

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