India will start exporting raw sugar to China from early next year, a move which will help to bridge the widening trade deficit with the neighbouring country, the commerce ministry said on Thursday.
"A contract for exporting 15,000 tonnes of raw sugar has been entered to by the Indian Sugar Mills Association and COFCO, a Government of China run public sector company," it said in a statement.
It said India plans to export two million tonnes of raw sugar to China beginning next year.
"Raw sugar is the second product after non-basmati rice that China will import from India. It is a move to reduce the $60 billion trade deficit that China has with India," the ministry added.
India's export to China in 2017-18 amounted to $33 billion, while imports stood at $76.2 billion.
India is the largest producer of sugar in the world with 32 million tonnes production in 2018.
It produces sugar of all three grades- raw, refined and white.
"Indian sugar is also of a high quality and is Dextran free because of the minimum time taken from cut to crush. India is in a position to become a regular and dependable exporter of high quality sugar in significant volumes to China," it added.