Steps to export sugar from India to other countries

 

Sugar export from India has reached a record 7.23 million tons in 2020-21, according to AISTA. The maximum exports of sugar were made to Indonesia, Afghanistan, UAE and Somalia. The prospects for export of sugar from India look really promising for sugar season 2022. The international price is at a four year high. The present price of 20 cents/pound of raw sugar gets converted to ex-mill realization of Rs 3,100-3,150/quintal for raw sugar.

The production of sugar from Brazil – which is the world’s largest sugar supplier – is showing a decline. This has been due to damage to sugarcane crops from unusually harsh weather conditions in the country in June and July.  Thailand is also producing seven to eight million ton less than the normal production amount. The reduced quantities of sugar produced from the two largest exporters have had an impact on global sugar prices. These prices have gone up by almost 60 percent to 65 percent in the last eight to nine months.

At present, the overseas market for sugar import and export is quite lucrative. If you are a trader looking to avail the most of the emerging business opportunities, you can start by moving ahead with conviction from one step to another.

In India, Foreign Trade Policy (FTP) notified by the Central Government regulates the exports and imports of products.

Export in itself is a very wide concept and lot of preparations is required by an exporter before starting an export business.  To initiate sugar export from India, the following steps may be followed:     

·        Create an organization with an attractive name and logo.

·        Open a bank account with a bank authorized to deal in Foreign Exchange.

·        Obtain a Permanent Account Number (PAN).

·        Get an Importer-Exporter Code (IEC) Number, mandatory for export/import from India

·        Get Registration cum membership certificate (RCMC) to avail authorization to import/export or any other benefit under FTP 2015-20.

·        Select a product in your case sugar. Bear in mind that all items are freely exportable excluding a few items in the restricted list.

·        Select overseas markets where you want to export depending on market size, quality specifications, payment options, etc. There are a few countries under the FTP where export benefits are available.

·        Find buyers after participating in trade fairs, exhibitions, or through Tradologie - the world’s first next generation global B2B platform.

·        Provide samples as per buyer specifications to secure export orders

·        Establish export costing considering all expenses from sampling to realization of export proceeds with the objective to sell maximum quantity at competitive costs subject to maximum profit margins

·        Negotiate with buyers; you can provide reasonable discount in price depending on future prospects and continuity of business relationships. 

·        Procure credit limit on foreign buyers from Export Credit Guarantee Corporation Ltd (ECGC) to safeguard against payment risks due to buyer/country insolvency, where buyers are placing orders without making advance payment. 

·        Process the export order by first confirming the same through initiating a formal contract with the overseas buyer.

·        Procure or manufacture the goods for export and according to the buyer’s requirement.

·        Maintain high quality and carry out pre-shipment inspection to sustain yourself in export business.

·        Label, package, pack and mark the goods according to specifications of buyers. Make sure that the products are easy to handle and capable of easy loading and reduced shipping costs.

·        Adhere to schedule and ensure fast and efficient delivery of consignments.

·        Follow customs procedures by availing the services of Customs House Agents licensed by the Commissioner of Customs. The professionals can help you with clearance of cargo from customs.

·        Some mandatory documents needed to carry out export import include Contract/Purchase Order, Packing List, Test Certificate/Quality Certificate, Fumigation Certificate, Phytosanitary Certificate, Bill of Lading (2 Original and 2 Non-negotiable), Certification of Origin, and Shipping Bill.

·        Submission of documents to bank after shipment within 21 days for onward dispatch to foreign bank and arranging of payments.

·        Export sugar or for that matter any other product of your choice and realize export proceeds in freely convertible currency of Indian rupees as per FTO 2015-2020. 

Connect with Tradologie.com if you want to export sugar at the best prices. This is a network of B2B buyers and sellers from across the world. It provides enquiry to payment solutions and helps traders conduct business in a transparent and cost-efficient manner.