How to Export Sugar from India
The increased demand for sugar on the global market has proven extremely beneficial to India's sugar industry. Numerous government policies have been put in place to increase the production of sugar, which in turn has resulted in increased exports. Today, India is the second-largest sugar exporter in the world and is both the largest producer and consumer of sugar.
Besides increasing production output, one of the main reasons why India’s export of sugar has seen an upward trend is due to initiatives that have been created by the government, such as aiding ethanol production within the country. For this reason, a lot of licensing processes and regulations must be followed by exporters before any shipment takes place, also ensuring safety precautions are taken when exporting sweet beverages that contain added sugars. As a result, we witness a remarkable growth within India’s industry, opening up numerous opportunities for those who wish to benefit from it.
Sugar Types that Can Be Export
Sugar is an essential commodity, and there are many types of sugar that can be exported.
White Sugar:- White sugar is the most common type of sugar used in various recipes and food preparation. It is a granulated form of sucrose, which has a light color and odorless taste.
Organic sugar: Organic sugar is also available for export, and it is made through evaporated cane juice from organic crops to create pure cane sugar crystals.
Brown sugar: Brown sugar has a golden-brown appearance due to it containing molasses; it can be in either light or dark varieties, with the darker variety containing more molasses than the light variety.
In addition to these more well-known varieties of sugars, there are also a range of specialty sugars that can be exported, such as Sucrose AR & LR and other sucroses ideal for pharmaceutical use like IP/BP/EP/USP/JP that conforms to specific legal standards. These kinds of specialty sugars are used extensively in medical industries as well as etc. All these types of sugars offer different characters and should be considered depending on the intended use when exporting them internationally. Exportable grades may differ by country, so careful research should be done prior to exporting a particular kind of sugar product in order to ensure.
Procedure for Exporting Suger Outside of India
The export of sugar and sugar confectionery (including white chocolate, but not cocoa) requires an applicable HS Code. Depending on the type of sugar, these codes can range from 1701–1704. A separate HS code (2303) is for the waste of sugar manufacturing, the residue of starch manufacturing, and other similar residues. These goods must have a clearly visible shelf life on the package they are to be exported with.
In addition to HS Codes, exports of sugar must comply with requirements mandated by Food Safety and Standards Authority of India (FSSAI). This involves ensuring a food symbol is present on the package as well as providing necessary quality control measurements such as brand name, method of preparation, organization or company name, FSSAI logo and FSSAI license number among others. All export-bound packages are required to bear manufacturing date, expiry date, lot number, batch number and net quantity.
Documentation needed for Sugar Exports Outside of India
Exporting sugar products from India requires detailed documentation to ensure that the process is legally compliant. Under the Export and Import (EXIM) Policy, all merchandize must be registered with the Directorate General of Foreign Trade (DGFT). This process requires an Import Export Code (IEC), which has to be obtained by a company registered in India. Additionally, the exporting organization needs to have release orders (EROs) from their customers.
The process of documentation also includes an export invoice containing details about the product being exported, such as quantity, item description, invoice number, date of exports and its intended destination. Furthermore, an export packing list has to be included in all shipments stating details on quantity per package as well as type and size of boxes. If goods are organic or certified-organic then separate authorization from APEDA is required before shipping them abroad. Hence, sufficient paperwork is essential for efficiently executing the entire procedure and ensuring its compliance with related laws both in India and the destination country.
What is the Status of Sugar Exports?
The growth of India's sugar exports over the past few years has been nothing short of impressive. Out of India's 110 lakh tonnes of sugar exported in 2021-22, raws alone accounted for 56.29 lakh tonnes, making it one of the largest raw sugar exporters in the world. This trend is mainly attributed to Indian raw sugar being free of dextran, a bacterial compound, and having higher sucrose content compared to other producers like Brazil, Thailand and Australia. Additionally, it is also easier and cheaper to refine Indian raw sugars due to its high polarization values (98.5-99.5%.)
However, with domestic availability becoming an issue this year due to lower stocks and production dipping, the government has capped India's exports in 2021-22 at 61 lakh tonnes. While this was necessary for food inflation control and ensuring domestic availability of sugar, what could be more detrimental than losing overseas markets when they are lost? Providing ways to secure these markets should be a priority if India wants to continue making progress in terms of export numbers anytime soon.
Exporting sugar from India can be a rewarding business opportunity, but it is important to be aware of the regulatory environment and to take the necessary steps to ensure compliance. By following the tips above, businesses can increase their chances of success in the global sugar export market.