Sugar deal between India and China to minimise trade deficit
New Delhi: India will soon begin to export raw sugar to China in early next year, to minimise the widening trade deficit between the two countries.
An official statement from the commerce ministry said that a contract for exporting 15,000 tonnes of raw sugar has been entered to by the Indian Sugar Mills Association (ISMA) and COFCO, a Government of China run public sector company.
"India plans to export 2 Metric Tonnes of raw sugar to China beginning from 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 USD 60 billion trade deficit that China has with India. India’s export to China in 2017-18 amounted to USD 33 billion while imports from China stood at USD 76.2 billion," it added. Also read: Demonetisation and its reality check India is the largest producer of sugar in the world with 32 MMT production in 2018 as it produces sugar of all three grades- raw, refined and white. India is in a position to become a regular and dependable exporter of high quality sugar in significant volumes to China.
The department of commerce in a tweet said: "India, one of the largest producers of sugar in the world, can produce all 3 grades of sugar and expects to export around 2 million tonnes of raw sugar to China from this year on wards".
Since most of the sugar produced in India is consumed inland, so India till now has restricted its exports to East Africa and Sri Lanka. India is now making a strong pitch for exporting sugar to China and Bangladesh to cut losses due to surplus sugar stocks.