Export of raw sugar from India to China will begin early next year, the government said in a notification. Raw sugar is the second product after non-basmati rice that China will import from India.
“A contract for exporting 15,000 tonne of raw sugar has been entered to by the Indian Sugar Mills Association and COFCO, a government of China run public sector Company,” said commerce and industry ministry in a statement.
India plans to export 2 million of raw sugar to China next year onwards.
India is the largest producer of sugar in the world with 32 million tonnes production in 2018. India is in a position to become a regular and dependable exporter of high quality sugar in significant volumes to China.
“It is a move to reduce the $60 billion trade deficit that China has with India,” it said.
India’s export to China in 2017-18 amounted to $33 billion while imports from China stood at $76.2 billion.