India plans to export 2 million tonnes of raw sugar to China from next year, a move which will help to bridge the widening trade gap between the two countries, trim bulging stocks of the sweetener and help the mills to repay cane arrears to farmers.
“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,” the commerce ministry 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 said.
Isma has set a target of sugar export of 5 million tonnes in 2018-19 sugar year (October-September).
Raw sugar is the second product after non-basmati rice that China has agreed to import from India this year following talks between officials from both sides. This is part of the effort to check the growing trade deficit between China and India, which crossed $60 billion in 2017-18.
India's export to China in 2017-18 amounted to $33 billion, while imports stood at $76.2 billion.
The country 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.
The country is expected to witness another year of bumper cane production in sugar year (October-September) 2018-19.
The output of the sweetener is estimated to be lower by 11 per cent at 31 million tonnes in the sugar season, though it will be in excess of estimated demand.