India has designated 8,606 metric tonnes of sugar for export to the US under the Tariff Rate Quota (TRQ) scheme, as outlined by the Directorate General of Foreign Trade (DGFT). This allocation pertains to the US fiscal year 2025.
Under the TRQ scheme, sugar exports (HS Code 17010000) to the US and EU are currently categorized as ‘Free,’ subject to specific conditions. According to the DGFT notification, a Certificate of Origin may be required for preferential exports to the US. This certificate will be issued by the Additional Director General of Foreign Trade in Mumbai, based on recommendations from the Agriculture and Processed Food Products Export Development Authority (APEDA) regarding the eligible entity and quantity.
The notification further specifies that from October 1, 2024, to September 30, 2025, 8,606 Metric Tonnes Raw Value (MTRV) of raw cane sugar will be exported to the US under the TRQ scheme. A tariff rate quota is essentially a system that allows exports at relatively low duties until a certain limit is reached; after this quota is exhausted, higher tariffs apply to additional shipments.
Last October, India extended restrictions on sugar exports indefinitely. Initially, these restrictions were set from June 1 to October 31, 2022, and later extended for another year until October 31, 2023. However, these restrictions do not apply to sugar exported to the EU and the US under the concession (CXL) and TRQ quotas. The primary goal of the sugar export restrictions was to stabilise domestic sugar prices.
