Home India Ministry of Commerce and Industry Amendment in Export Policy for Pharma Grade Sugar reg...
Date: 2025-06-25 Category: Extra Ordinary State: Union Government Country: India

Amendment in Export Policy for Pharma Grade Sugar reg

Issued by Ministry of Commerce and Industry · Directorate General of Foreign Trade

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Executive Summary & Key Takeaways

Okay, here is the policy analysis report based on the provided government policy text: **Report on Amendment to Export Policy for Sugar** **1. Executive Summary:** This report analyzes an amendment to India's export policy for sugar, effective June 17, 2025. The amendment, modifies the export conditions related to various types of sugar, including raw, white, refined, and organic sugar under ITC HS codes 17011490 and 17019990. The primary change involves restricting sugar exports with exceptions for exports to the EU under the CXL quota, to the USA and UK under TRQ, and for Pharma Grade Sugar under restricted authorization. The amendment aims to regulate sugar exports, potentially to manage domestic supply and prices, while adhering to international trade commitments and allowing Pharma Grade Sugar exports. **2. Introduction:** This report provides an overview and analysis of the amendment to the export policy for sugar as outlined in the provided government notification. The analysis focuses on the changes introduced by the amendment, their potential rationale, and implications for relevant stakeholders, based solely on the information contained within the given text. **3. Policy Overview:** * This document is an *amendment* to the existing Foreign Trade Policy 2023, specifically impacting Chapter 17 of Schedule II Export Policy, ITC HS 2022. * **Core Objective(s):** Based on the text, the amendment appears to aim to: * Regulate the export of sugar (raw, white, refined and organic) by imposing restrictions. * Manage sugar exports within the framework of existing trade agreements (CXL quota with the EU, TRQ with USA and UK). * Permit Pharma Grade Sugar exports under restricted authorization. **4. Background and Rationale:** This amendment likely responds to the need to manage domestic sugar availability and prices by controlling exports. The general restriction suggests a concern about potential shortages or price increases within India. The exceptions for EU, USA, and UK exports indicate a commitment to fulfilling existing trade obligations. Furthermore, the explicit allowance of Pharma Grade Sugar exports suggests a recognition of its importance and a desire to facilitate this specific sector. **5. Key Provisions / Changes:** This section details the specific changes introduced by the amendment: * **Specific Part of Original Policy Changed:** The export policy conditions under Chapter 17 of Schedule II Export Policy, ITC HS 2022, specifically affecting ITC HS codes 17011490 and 17019990. * **New Rule/Provision:** The export of sugar (raw, white, refined, and organic) is restricted until further orders, with the following conditions: * Exports are generally prohibited unless specific permission is obtained from the Directorate of Sugar, Department of Food and Public Distribution (DFPD), Ministry of Consumer Affairs, Food and Public Distribution. * A detailed procedure for obtaining export permission will be notified separately by the DFPD. * Exports to the EU under the CXL quota are *free*, subject to the condition that the Certificate of Origin is issued by the Additional DGFT, Mumbai, and exporters must furnish details of actual exports to the Additional DGFT, Mumbai, and APEDA, New Delhi. This is subject to quantitative ceilings notified by DGFT from time to time. * Exports to the USA under the TRQ are subject to APEDA, New Delhi operating the quota as per modalities and operational guidelines to be notified by them. Exporters shall be required to furnish the details of actual exports to APEDA, New Delhi. The Certificate of Origin, if required, shall be issued by Additional DGFT, Mumbai. This will be subject to quantitative ceiling notified by DGFT from time to time. * Exports to the UK under TRQ will be operated by APEDA, New Delhi, and implemented as the agency for the export of TRQ items to the UK. * Exports of Pharma Grade Sugar up to 25,000 MTs in a financial year is allowed under restricted export authorization, requiring a valid drug manufacturing license and test reports from NABL accredited laboratories. * **Difference/Effect of Change:** The amendment shifts the default position from potentially unrestricted export to a restricted export regime, requiring explicit permission for most sugar exports. It carves out exceptions for specific trade agreements and Pharma Grade Sugar, creating a more controlled export environment. **6. Target Audience and Stakeholders:** The target audience and stakeholders directly affected by this amendment include: * Sugar manufacturers and exporters in India. * The Directorate of Sugar, DFPD, and Ministry of Consumer Affairs, Food and Public Distribution. * APEDA (Agricultural and Processed Food Products Export Development Authority). * Additional DGFT (Directorate General of Foreign Trade), Mumbai. * Importers of Indian sugar in the EU, USA, and UK. * Pharma Grade Sugar manufacturers and exporters. **7. Implementation Aspects (Inferred):** * **Responsible Agency/Bodies:** Directorate of Sugar, DFPD, APEDA, Additional DGFT (Mumbai). * **Timelines/Procedures:** A detailed procedure for obtaining export permissions will be notified separately by DFPD. Exporters need to provide information to specified bodies, and quantitative ceilings will be notified by DGFT from time to time. * **Changes Specific to the Amendment:** Implementation will require the DFPD to establish and communicate the new procedure for export permission. APEDA will need to manage the TRQ quotas for the USA and UK as per the notified guidelines. Pharma Grade Sugar exporters must obtain restricted export authorizations and provide necessary documentation. **8. Expected Outcomes / Impact of Changes:** The likely intended outcome of these changes is to: * Stabilize domestic sugar prices and ensure adequate supply within India. * Fulfill commitments under existing trade agreements with the EU, USA, and UK. * Facilitate exports of Pharma Grade Sugar under controlled conditions. * Increase administrative oversight of sugar exports. The potential impact includes: * Reduced sugar exports overall, except under specific quotas and authorizations. * Increased compliance burden for sugar exporters. * Potential shifts in export destinations based on quota availability. * Greater scrutiny of Pharma Grade Sugar exports. **9. Conclusion:** The amendment to the sugar export policy introduces significant restrictions on sugar exports while maintaining commitments under trade agreements and facilitating Pharma Grade Sugar exports. The changes are likely intended to balance domestic needs with international obligations and will require exporters to adapt to the new regulatory environment. This signifies a move towards a more regulated sugar export landscape in India.

Key Entities Referenced

Foreign Trade Development Regulation Act 1992: Indian law that empowers the central government to regulate foreign trade. Foreign Trade Policy 2023: A policy document outlining guidelines and objectives for India's foreign trade. Central Government: The Government of India. ITC HS 2022: Indian Trade Clarification based on Harmonized System of Coding 2022 which is used for classifying goods in import and export. Directorate of Sugar: An Indian government entity responsible for sugar-related matters. Department of Food and Public Distribution: A department under the Ministry of Consumer Affairs, Food and Public Distribution in India. EU: European Union Additional DGFT, Mumbai: Additional Directorate General of Foreign Trade, Mumbai. APEDA, New Delhi: Agricultural and Processed Food Products Export Development Authority, located in New Delhi. USA: United States of America
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S.O. 2846(E).— In exercise of the powers conferred by Section 3 read with Section 5 of the Foreign Trade (Development & Regulation) Act 1992, read with Para 1.02 and 2.01 of the Foreign Trade Policy 2023, as amended from time to time, the Central Government hereby amends the following Export policy condition under Chapter 17 of Schedule-II (Export Policy), ITC (HS) 2022 with immediate effect: ITC (HS) Existing Export Policy Condition Revised Export Policy Condition Code 17011490 1. Export of Sugar (Raw Sugar, White Sugar, 1. Export of Sugar (Raw Sugar, White Sugar, --- Other Refined Sugar and Organic Sugar) is Refined Sugar and Organic Sugar) is Restricted Restricted till further orders subject to the till further orders subject to the following 17019990 following conditions:- conditions:- --- Other4 THE GAZETTE OF INDIA : EXTRAORDINARY [PART II—SEC. 3(ii)] (i) export of sugar is allowed only with (i) export of sugar is allowed only with specific specific permission from Directorate of permission from Directorate of Sugar, Sugar, Department of Food and Public Department of Food and Public Distribution Distribution (DFPD), Ministry of (DFPD), Ministry of Consumer Affairs, Food Consumer Affairs, Food and Public and Public Distribution Distribution (ii) Detailed procedure for issue of necessary (ii) Detailed procedure for issue of necessary permissions for export of sugar will be permissions for export of sugar will be notified notified separately by Department of Food separately by Department of Food and Public and Public Distribution (DFPD) Distribution (DFPD) 2. However, Export of Sugar to EU under 2. However, Export of Sugar to EU under CXL CXL Quota is free subject to the following Quota is free subject to the following condition: condition: - The Certificate of Origin shall - The Certificate of Origin shall be issued by be issued by Additional DGFT, Mumbai. Additional DGFT, Mumbai. The exporters The exporters shall be required to furnish shall be required to furnish the details of actual the details of actual exports (viz. quantity, exports (viz. quantity, value, destination, name value, destination, name &address of &address of foreign buyer etc.) to the foreign buyer etc.) to the Additional DGFT, Additional DGFT, Mumbai as well as to Mumbai as well as to APEDA, New Delhi. APEDA, New Delhi. This will be subject to This will be subject to quantitative ceiling quantitative ceiling notified by DGFT from notified by DGFT from time to time. time to time. 3. However, Export of Sugar to USA under 3. However, Export of Sugar to USA under TRQ TRQ subject to following condition: - The subject to following condition: - The quota will quota will be operated by APEDA, New be operated by APEDA, New Delhi as per the Delhi as per the modalities and operational modalities and operational guidelines to be guidelines to be notified by APEDA. The notified by APEDA. The exporters shall be exporters shall be 10/2015-20 20/2015-20 10/2015-20 20/2015-20 36/2023 24.05.2022 36/2023 24.05.2022 07.09.2015 18.10.2023 07.09.2015 18.10.2023 required to furnish the required to furnish the details of actual details of actual exports(viz. quantity, value, exports(viz. quantity, value, destination, destination, name &address of foreign buyer name &address of foreign buyer etc.) to the etc.) to the APEDA, New Delhi. The APEDA, New Delhi. The Certificate of Certificate of Origin, if required, shall be issued Origin, if required, shall be issued by by Additional DGFT, Mumbai. This will be Additional DGFT, Mumbai. This will be subject to quantitative ceiling notified by subject to quantitative ceiling notified by DGFT from time to time. DGFT from time to time. 4. However, Export of Sugar to UK under 4. However, Export of Sugar to UK under TRQ TRQ subject to following condition: - The subject to following condition: - The quota will quota will be operated by APEDA, New be operated by APEDA, New Delhi as the Delhi as the implementing agency for implementing agency for export of TRQ items export of TRQ items to UK. to UK. 5. However, Export of Pharma Grade Sugar shall be permitted under a Restricted Export Authorization, subject to the following safeguards – i. Total Exports in a financial year shall not exceed 25,000 MTs[भाग II—खण्‍ड 3(ii)] भारत का रािपत्र : असाधारण 5 ii. Mandatory submission of a valid drug manufacturing license issued by the concerned State Licensing Authority; and iii. Submission of requisite test reports and certification from NABL accredited laboratories confirming compliance with Pharma Grade Sugar specifications at the time of actual exports. Effect of This Notification: Export of Pharma Grade Sugar, up to a total of 25,000 MTs per financial year, shall be permitted to Bonafide Pharma Exporters against a Restricted Export Authorisation. [F. No. 01/91/191/025/AM23/EC/E-34622] AJAY BHADOO, Director General of Foreign Trade Ex- Officio Addl. Secy. Uploaded by Dte. of Printing at Government of India Press, Ring Road, Mayapuri, New Delhi-110064 and Published by the Controller of Publications, Delhi-110054.

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