India has approved the export of 8,606 metric tonnes of sugar to the United States under the Tariff Rate Quota (TRQ) scheme for the US fiscal year 2025, according a notification isssued by the Directorate General of Foreign Trade (DGFT).
Under the TRQ scheme, the export of sugar to both the US and the European Union is currently permitted without restrictions, though it is subject to certain conditions. According to the DGFT notification, a Certificate of Origin for preferential sugar exports to the US, if required, will be issued by the Additional Director General of Foreign Trade in Mumbai. This will be based on recommendations from the Agriculture and Processed Food Products Export Development Authority (APEDA) regarding the eligible entities and quantities.
The DGFT notification further specified that the allocation of 8,606 Metric Tonnes Raw Value (MTRV) of raw cane sugar for export to the US under the TRQ scheme will be applicable from October 1, 2024, to September 30, 2025.
A tariff rate quota allows for exports at relatively low duties within a certain limit, after which higher tariffs are imposed on additional shipments.
India has maintained restrictions on sugar exports since October of the previous year, extending these restrictions until further notice. Initially, these restrictions were put in place from June 1 to October 31, 2022, and were later extended by a year to October 31, 2023. However, these restrictions do not apply to sugar exports to the EU and the US under the concession (CXL) and TRQ quotas.
