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How To Export Sugar From India

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Introduction: Export Sugar

Sugar exports have increased significantly in recent years, and according to the food ministry, India is now the second-largest sugar exporter in the world. The Indian sugar industry has benefited from a number of government policies that have increased sugar production, which has resulted in a brand-new hit on the global market. Due to the increase, India is now both the world's largest producer and consumer of sugar. The government initiative was created to boost ethanol production in the nation. Due to the numerous advantages of sugar production and export, the sugar industry in India has experienced rapid growth. A lot of licensing and adherence to government regulations are needed for the export of sugar, and exporters must take a number of safety precautions for the export of sugar and sugar-sweetened beverages. Let’s understand the same.

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Government Regulations

As sugar is considered one of the important commodities, the sales, delivery, and distribution of sugar are regulated through the Essential Commodities Act, of 1955; for the export of sugar, the Sugar Export Promotion Act, of 1958, is taken into consideration. 

Types of Sugar that Can be Exported

  • White Sugar
  • Organic sugar
  • Brown Sugar
  • Sucrose AR &  LR and Speciality sugar
  • Sucrose IP/BP/EP/USP/JP
  • Pharmaceutical Sugar
  • Sugar cubes
  • Candy Sugar
  • Rainbow sugar
  • Fondant icing sugar
  • Pearl sugar

Export Procedure of Suger Outside India

  • The HTS code

For the export of sugar and sugar confectionery (including white chocolate) but not cocoa, the HS code is a must. The sugar product comes under the category of processed agriculture/food items, and the HS code for the same varies from 1701 to 1704 depending on the type of sugar, and the HS code 2303 is for the waste of sugar manufacturing, residue of starch manufacturing, and other similar residues, beet-pulp, bagasse, brewing or distilling dregs, and other waste, whether or not in the form of pellets. The shelf life of the sugar must be clearly mentioned on the package.

  • FSSAI Registration

Food Safety and Standards Authority of India (FSSAI) gives value to the sugar in the market through the food symbol, the method of handling sugar, the brand name, the commodity name (sugar as per quality), Grade, method of preparation, organization or company name, FSSAI logo, FSSAI license number, net quantity, manufacturing date, expiry date, lot number, and batch number are all ensured by the FSSAI authorization. 

  • DGFT License

Every category of foods requires DGFT License, through which the IEC code is provided, and through the single integrated platform, the GST and taxation for the goods are taken into account. The linking of IEC through DGFT makes the exporter's ease in the exporting process. 

Recently, the government has issued several restrictions on the export of sugar and white sugar under the category of restricted exports. So the exporter has to get an Export Release Order (ERO) from the Directorate of Sugar and Vegetable Oils, Department of Food and Public Distribution (DFPD), Ministry of Consumer Affairs, Food and Public Distribution, under Section 3 of the Essential Commodities Act, 1955, along with Clauses 4 and 5 of the Sugar Control Order, 1966, for the export of sugar under certain restrictions. 

  • APEDA Registration

The National Program of Organic Production (NPOP), through the APEDA, sets regulations for the APEDA authorization of sugar products, organic sugar, etc. The organic food registration process is followed through a separate registration mechanism and accreditation system. The applicant is required to furnish information about the exporting goods, including quantity, value, name and address of overseas buyers, etc., and a certificate of origin that shall be issued by the additional DGFT. 

  • Export Release Order (EROs)

As per the recent amendment, sugar mills and exporters require Export Release Orders (EROs) from the Directorate of Sugar, Department of Food and Public Distribution (DFPD). The objective of the DFPD is to ensure the food security of the country through the efficient distribution and procurement of food grains, the maintenance of stock and storage, and the maintenance of stock prices of food grains. The government has started several policies through this department for the wellbeing of the farmers, the Minimum Support Price Mechanism, the distribution of food grains to BPL households and households through the Anyodaya Anna Yojana (AAY), and the establishment of Panchayati Raj Institutions in the Public Distribution System (PDS). 

The ERO has been made for the countries such Qatar, Sri Lanka, Nepal, for the export of sugar, Pharma sugars, organic sugar etc.

Procedure for Obtaining Export Release Order (EROs)for the Export of Sugar

The restriction imposed by the government led to an export release order under certain conditions from the Directorate of Sugar through the National Single Window System portal.

  1. Register yourself at the NSWS portal under the Investor login head.
  2. Verification of the personal details through the email.
  3. Add the form of “applying for export release order from the directorate of sugar”.
  4. The form will be visible at the Investor dashboard 
  5. Fill the Common Registration form (CRF) through the basic details of the organization such as Company Registration number, Entity identification number, Postal address of organization, authorized signatory details, factory location, product offering details etc.
  6. Subsequently fill the ERO application form wherein you need to mention the Sugar mill details, Sugar stock details, Exporter/Importer details. Exporter contact details, self-declaration and submit the same.
  • Confirmation of Overseas Buyer

The exporter must confirm the details of the overseas buyer to whom the product is being sold, and a letter of credit is required from the buyer confirming the documentation of acceptance, payment, etc. under the same. 

  • Credit Risk Insurance

The exporter requires marine insurance approval, which varies for different products and the requirements of the seller and buyer.  

  • Quality Check

The quality assurance certification of the importing country is made mandatory for certain categories of food products, even after several checks and certification from the Indian authorities. Most of the developed countries such as the USA, UK, Canada, Japan, etc. require mandatory authorization from their own countries during the export of Indian products.

Documentation required for the Export of Sugar Products Outside India 

  • IEC Registration
  • Registered Company details 
  • Export release order (EROs)
  • Export invoice 
  • Export packing list 
  • APEDA Registration (Separate authorization for organic sugar)
  • Certificate of Origin 
  • PAN and GST details of the Exporting goods
  • Details of the Company, Director, Proprietor, and partners
  • Letter of credit (from the overseas buyer)
  • Custom Clearance certificate
  • Importing country authorization
  • Narcotics certification
  • Type of container (FCL or LCL) 

Conclusion

Through the Department of Food and Public Distribution, the government has taken a number of actions to support farmers and the sugar production industries. It has also made policies in the sugar sector for the sugar industries, such as fixing a fair and remunerative price (FRP) for sugarcane. The government has implemented other policies through these measures, such as the beginning of training programs and technological advancement, for the benefit of sugar farmers and the industry. Get in touch with us for more details on the regulations to be followed and the steps that must be taken for the export of sugar and sugar-based confections.

DGFT License

Corpseed will be liaising partners for your import/export license requirement and policy/procedures. We can handhold you through the complete licensing formalities with the Director General Foreign Trade (DGFT).

DGFT eBRC Certificate

Team Corpseed will help your organization to apply for eBRC Certificate Online. Electronic bank realization certificate is issued by banks to the exporter for the purpose of claiming benefits under the various schemes of the Foreign Trade Policy

Import Export Code

IEC (Import Export Code) license is mandatory certificate to get before starting any business related to import or export of goods from one country to another. Apply for IEC Code to avoid any penalties from port authorities. No Hidden Fees.

This portion of the site is for informational purposes only. The content is not legal advice. The statements and opinions are the expression of author, not corpseed, and have not been evaluated by corpseed for accuracy, completeness, or changes in the law.

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Author
Ravikant Rai
Hi, I am Ravikant Rai, a Technology Lawyer, who graduated with B. A. LL. B. (Hons.) from the school of law and legal affairs at Noida International University I have two years of experience writing about law as a freelancer and aspiring lawyer. In addition, I have experience writing, Content creation and researching legal information. Various articles on business and corporate law, cyber law and cyber security have been authored by me. I currently work in technology deals, corporate, fintech, and cyber law, etc. I have written documents on a variety of subjects, including software licensing, license to use, terms of service, privacy policy, cloud computing service, data security, confidentiality, and data protection, as well as shareholder and founder requirements.

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