India wants to export sugar worth $350mn to China

BEIJING: India on Friday made a pitch to export 1.5 million tons of raw sugar worth more than $350 million to China, a proposal that officials said was first discussed by Prime Minister Narendra Modi and President Xi Jinping during their informal summit at Wuhan in April.

BEIJING: India on Friday made a pitch to export 1.5 million tonnes of raw sugar worth more than $350 million to China, a proposal that officials said was first discussed by Prime Minister Narendra Modi and President Xi Jinping during their informal summit at Wuhan in April.

Representatives from 25 Chinese sugar companies held talks on the issue with a delegation from the Indian Sugar Mills Association (ISMA) in Beijing.

India’s surplus production of 7 million tonnes of sugar this year and the possibility of more next year prompted the move, ISMA president Gaurav Goel said after the meeting.

“India has a surplus of 7 million tonnes this year and the next year, it will almost be the same. So India has to find new markets for exports. Earlier, we exported to Africa and the Middle East, but China has been the market India has never tapped,” Goel said.

India is looking at exporting sugar to China - which imports it from Brazil, Thailand, Australia and Cuba - and Bangladesh.

“China is the largest importer of sugar in the world and that’s why we are here to see if India and China can now become trade partners for sugar,” Goel said. “And this is the first time we all are here and we believe China can buy a large amount of sugar from India.

“China imports approximately 4 million tonness to 5 million tonnes. India’s export of sugar to China has been very small. In 2007, India’s sugar exports to China was 200,000 tonnes,” he added.

ISMA officials said India hopes to export sugar to China under the 50% tariff category, though details are yet to be worked out. This will make the price competitive for the Chinese market.

China usually charges 80% tariffs on sugar imports.

The response from Chinese officials to India’s offer was mostly positive, Goel said.