Govt permits 8424 MTs of sugar to US under Tariff Rate Quota
The Dollar Business Bureau
The DGFT in its notification no., 52/2015-2020 issued on Dec 30, 2016, has increased the quantity of sugar to 8424 metric tonnes, under Tarriff Rate Quota being exported to the US.
According to the new notification shipments can enjoy further low tariff than provided to them in June.
“The Director General of Foreign Trade hereby allocates a quantity of 8424 MTs (Eight thousand four hundred and twenty four metric tons) of raw sugar (at 98 degree pol), out of nonlevy (Free Sale) quota for export under Tariff Rate Quota (TRQ) to USA for the US fiscal year 2017 (October 1, 2016 to September 30, 2017)”, the DGFT says in the notification.
It is known that TRQ is a quota fixed by the US Government for the volume of exports that enter its country at low tariff rates. Once the fixed quota is reached, the tariff is increased on the additional imports.
This move is important as the government has imposed 20% duty on the export of sugar in order to give a boost to the Indian sugar industry and keep a check on the prices which have fallen drastically.
As of today the retail price of sugar being sold in the country is at Rs 36/ kg. While prices in the New York Stock Exchange Sugar Futures on Dec 30 showed that sugar price was trending between $19.41 to $19.70.