Government softens norms for sugar exports to EU, US

Liberalising norms for international traders, the government on Tuesday extended the benefits of preferential quota exports to the entire Sugar Industry. So far, the benefit was meant for only state trading enterprises (STE).

 The Dollar Business Bureau Sugar-Exports-The-Dollar-Business Now all sugar exporters will be allowed to sale certain amount of the sweetener under preferential quota to European Union (EU) countries and the United States (US). Liberalising norms for international traders, the government on Tuesday extended the benefits of preferential quota exports to the entire Sugar Industry. So far, the benefit was meant for only state trading enterprises (STE). The preferential quota sugar to EU was being exported through STE subject to quantitative ceiling notified by the Directorate General of Foreign Trade (DGFT). “The government has now decided to liberalise the export policy in respect of export of preferential quota sugar to EU from ‘STE’ to ‘Free’ regime,” the Ministry of Commerce and Industry said in a statement. The certificate of origin shall be issued by the Additional DGFT, Mumbai. Exporters will be required to give details of actual exports to the Additional DGFT, Mumbai as well as to the The Agricultural and Processed Food Products Export Development Authority (APEDA). In the case of preferential quota sugar export to the US, the quota will be operated by the APEDA, New Delhi, the ministry said. The exporters supplying sugar to US importers will be required to give the details of actual exports to the APEDA, New Delhi. However, the certificate of origin, if required, will be issued by the Additional DGFT, Mumbai. The change in the policy will enable all sugar traders in the country to export the sweetener after registration from the APEDA or DGFT. At present, the authorities have set the export quota limit at 10,000 tonnes for the EU and 8,000 tonnes for the US. In order to promote sugar exports, the government, in February this year, had increased the subsidy to Rs 4,000 per tonne to sugar mills for exports of up to 1.4 million tonnes of raw sugar in the 2014-15 crop year (October-September). According to the Indian Sugar Mills Association (ISMA), at the current global and domestic prices, raw sugar exports from India is just about viable with incentives. Reports say that sugar mills across the country have booked orders to export 50,000 tonnes of sugar after the announcement of and increased subsidy. India is the biggest sugar producer after Brazil. Though the country’s annual domestic consumption is 24.8 million tonnes, it is expected to produce up to 25 million tonnes of sugar during this year. Besides, the country already has an excess stock of 7.2 million tonnes.    

 This article was published on April 28, 2015 – 7:30 pm IST.

 

The Dollar Business Bureau - Apr 28, 2015 12:00 IST
 
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