India is the second-largest sugar-producing nation in the world. During the period 2019-20, India’s sugar exports stood at 5 million metric tonnes. It made India the third-largest sugar exporter after Brazil (19.3 MMT) and Thailand (10.65 MMT). In this article, we will discuss India Allows Additional 3569 Tonne Sugar Exports.
However, lately, India has been struggling with huge stockpiles of sugar. The Indian sugar industry carried forward more than 10.7 million tonnes of sugar stocks from last season. However, with exports slated to be approximately 20% less than the target, India is all set to miss its sugar exports this year. Several reasons have contributed to the fall, including a fall in demand, late start to shipments, and logistical challenges.
Sugar Exports and APEDA Registration
APEDA, or the Agricultural and Processed Food Products Export Development Authority, was established in December 1985 by the GOI under the APEDA Act. Apart from various other functions, the statutory body is primarily responsible for promoting exports of scheduled products from India. An individual or firm must necessarily obtain an APEDA Registration if they want to undertake the export business.
India Allows Additional 3569 Tonne Sugar Exports to the US
The Government of India has recently allowed an additional export of 3569 tonnes of raw and refined sugar to the US under the Tariff Rate Quota or the preferential quota arrangement.
While the reason has not been widely publicized, we believe it is an effort on the Government’s part to cover the shortfall in sugar exports, as already discussed above.
What is TRQ or Tariff Rate Quota?
Essentially, a tariff is a tax or fee levied on the value of imports. It varies depending on the importing country, the products imported, and the existence or non-existence of a preferential trade agreement.
Simply defined, TRQ or Tariff Rate Quota is the maximum quantity of exports that can enter an importing country at relatively low tariffs.
Tariff Rate Quota and Sugar Exports to the US
Sugar exports to the US are dictated by TRQs. The Tariff Rate Quotas apply to the US imports of refined sugar, sugar-laden products, sugar syrups, speciality sugars, etc. The Tariff Rate Quotas imposed by the US help it comply with the requirements laid down under NAFTA and the Uruguay Round Agreement on Agriculture.
What Does the Additional 3,569 Tonne Sugar Exports to the US Imply?
The preferential quota agreement between the US and India allows India to enjoy a duty-free 10,000-tonne worth of sugar exports to the US. With India allowing an additional 3,569 tonnes of raw cane and refined sugar exports to the US, the total TRQ sugar exports from India during the US fiscal year 2020 would be 12,738 tonnes.
For more such exciting and interesting articles relating to international economic events, please stay tuned in.
Moreover, you require any kind of guidance related to the APEDA Registration, please feel free to contact our business advisors at 8881-069-069.
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