Govt allows export of 8,200-tn sugar to US

The government has allowed export of 8,200 tonnes of raw sugar to the US, as the country is likely to achieve a higher production than the annual demand in the 2010-11 season after two years of low output.

"India enjoys duty-free exports to the US up to 10,000 tonnes annually under a 'preferential quota' arrangement. Under this, we have allowed export of 8,200 tonnes of raw sugar," a senior government official said.

A formal notification would be issued this week by the Directorate General of Foreign Trade (DGFT), he said. The exports will be undertaken by trading firm Indian Sugar Exim Corporation during the 2010-11 season ending September. 

India, the world's second biggest producer but largest consumer of sugar, could not export the sweetener to the US for the last two years due to short supply, the official said.

He also said that the export opening is lucrative for Indian sugar exporters, as they manage to get attractive prices in the US market. India has a 'preferential quota' arrangement for sugar export with the European Union as well.

Both in 2008-09 and 2009-10, the country's production had declined to 14.7 million tonnes and 19 million tonnes, respectively, from 26.3 million tonnes in the 2007-08 season.

However in the 2010-11 season, sugar production is estimated higher at 25 million tonnes against the annual demand of 23 million tonnes.

Sugar season runs from October to September.