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Government boosts US raw sugar import

Government boosts US raw sugar import
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Tariff-rate quotas (TRQs) allow the entry of raw sugar into the country at low tariffs. It applies to several sugar products like raw sugar, sugar syrups, refined sugar, etc.  Approximately 3.8 million metric tons of sugar have been imported in the years 2019-2020 in the US. Most of the sugar imported to the country is from developing countries.

Boost in Imports-

Sugar supplies have been tight in the US since Michigan Sugar Co declared to provide only 75% of the contracted supply and when due to weather conditions delayed sugar beet planting in Upper Midwest. Recently in July, the government decided to allow approximately 235,000 tons of additional raw sugar imports to boost the low supply of sugar in the current 2021-22 years.

The US Department of Commerce (DOC) announced the increase in export limits of Mexico in raw sugar under the Agreement Suspending the Countervailing Duty Investigation on Sugar and in turn Mexico’s government accepted the supply of additional sugar. The DOC has also previously increased the export limit for Mexico in November 2021 and April 2021.

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