The apex body of domestic sugar producers, Indian Sugar Mills Association (ISMA), and a public run Chinese commodity firm COFCO recently signed an agreement which has paved the way for exports of 50,000 tonnes of raw sugar from India to China. The consignment would be dispatched early next year. This follows the initiative taken by the Ministry of Commerce which led to several rounds of meetings between senior officials of both countries.
India plans to export 2 MT 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.
India is the largest producer of sugar in the world with 32 MMT production in 2018. India produces sugar of all three grades- raw, refined and white.