A very relieving and wonderful good news has come from America for Indian sugar exporters and farmers of the country. The US has made a bumper allocation of additional 542 metric tons of raw value for the import of raw cane sugar from India under the Tariff-Rate Quota (TRQ) for the financial year 2026-27. After this big and historic decision, now India's total limit for sending sugar to America at very low duty has increased to 9,148 MTRV, due to which there is huge enthusiasm among the sugar traders and farmers of the country.
America increased the scope and quota of exports
According to media reports, the Office of the US Trade Representative (USTR) has announced new allocation for many countries of the world under TRQ of raw cane sugar for the remaining period of the financial year 2026-27. Under this, the total in-quota quantity has been determined at 11,17,195 metric tonnes raw value (MTRV), which fully meets the minimum commitments of the US under the World Trade Organization (WTO) agreement. Earlier, the US had made an initial allocation of 10,61,202 MTRV among various trading partners on July 24, 2026, and now USTR has also allocated an additional 55,993 MTRV of the remaining quantity.
Indian sugar exporters and farmers will get direct benefits
After increasing this quota of export of raw cane sugar by America, Indian exporters and producers are going to get huge and direct benefits. Experts believe that this will provide a great opportunity to Indian sugar producers to strengthen their hold in the American market and earn more profits than before. Eligible exporters who fulfill all the necessary documents and conditions related to quota eligibility and country of origin will be able to easily transport their sugar to the US markets at very low duty.
New quota rule will be effective from October 1
This additional allocation has been made by America for the new financial year, which will start from October 1, 2026 and will be fully effective till September 30, 2027. The original WTO allocation of raw cane sugar for India has been fixed at 8,606 MTRV i.e. 9,486 short tonnes. It is determined by historical trade share based on past WTO commitments. This new additional allocation has been made available as extra quantity over and above the original quota, further strengthening India's position in the global market.
Certification process and role of government agencies
It is very important for major sugar exporting countries like India to verify the country of origin of sugar sent to the US and have valid certification to prove quota eligibility. India's comprehensive sugar export policy, as always, will continue to be subject to the supply situation in the domestic market and the applicable regulations of the country. Let us tell you that this entire process of US TRQ allocation is conducted through the concerned government institutions in India, which mainly include the Directorate General of Foreign Trade (DGFT) and Agricultural and Processed Food Products Export Development Authority (APEDA). As per available data, the total exports of sugar and confectionery products from India to the US have been worth about $30.54 million.