In a move to facilitate international trade, India has formally announced a sugar export quota of 5,841 tonnes for the European Union (EU) for the 2025-26 marketing year. This export will be carried out under the EU’s tariff-rate quota (TRQ) scheme, which allows a specific volume of goods to enter the EU with a lower-than-usual tariff.
What Is a Tariff-Rate Quota (TRQ)?
A TRQ is a trade policy tool with two main components:
- Lower Tariff: A set quantity of a product (the quota) can be imported at a reduced tariff rate.
- Higher Tariff: Once this quota is exhausted, any additional imports are subject to a much higher tariff.
This system gives exporting nations a chance to compete in the EU market while still protecting the EU’s domestic producers from a sudden surge of imports.
How India Will Implement the Quota
The Director General of Foreign Trade (DGFT) made the official announcement. The Agriculture and Processed Food Products Export Development Authority (APEDA) will be the main agency in charge of managing the export process.
For any preferential exports of sugar to the EU, a Certificate of Origin is required. This certificate will be issued by the Additional Director General of Foreign Trade (ADGFT) in Mumbai. They will issue it only after receiving a recommendation from APEDA, which will identify the specific companies and quantities eligible for the quota.