Govt allows 8,200 tonne sugar export to US in FY11

With production likely to exceed demand, India today allowed exports of 8,200 tonnes of raw sugar to the US as India in 2010-11 season ending September.

"Directorate General of Foreign Trade allocates a total quantity of 8,200 tonnes of raw sugar out of non-levy quota of 2010-11 for export under tariff rate quota to US for the US fiscal year 2011 through Indian Sugar Exim Corporation," DGFT said in a notification.

India enjoys duty-free exports to the US up to 10,000 tonnes annually under a 'preferential quota' arrangement.

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.

India has a 'preferential quota' arrangement for sugar export with the European Union as well.

Both in 2008-09 and 2009-10 seasons, 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.