According to DGFT, the government has approved an additional 2,051 metric tonnes of raw sugar export to America under the tariff-rate quota (TRQ) for the fiscal year ending September 30, 2022.
TRQ is a volume quota for exports that enter the United States with reduced tariffs. Additional imports are subject to a higher duty if the quota is met.
"An additional amount of 2,051 MT of raw sugar has been notified for export to the United States under TRQ until September 30, 2022," the Directorate General of Foreign Trade (DGFT) announced in a public notification.
It went on to say that with this amount, total sugar exports to the US under the TRQ would be 10,475 MT in fiscal year 2022.
The TRQ, according to the DGFT, is a system that permits a fixed number of items to be imported. These exact items relate to the custom notification connected with it.
Tariff quotas are used on a variety of items, although they are most commonly employed in agriculture sector.
The most frequent foods are cereals, meat, fruits and vegetables, and dairy products, with sugar being protected in most producing nations.
India, the world's second-largest producer and consumer of sugar, has a preferential quota agreement with the European Union for sugar export.
The fiscal year 2022 in the United States covers the period from October 1, 2021, to September 30, 2022.
The government reported on May 4 that sugar production this year is expected to be 355 LMT (lakh metric tonnes), up from 310 LMT last year. With 85 LMT of carry over stock from last year (2021-22), total availability is estimated to be 440 LMT, up from 420 LMT last year.
According to the administration, 95-100 LMT is expected to be supplied for export.
