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India asks EU to restore duty free sugar export quota

India has asked the European Union to retain duty free quota of basmati rice imports and further restore the country's quota for sugar exports to the region.

"India is negotiating with the European Commission on all issues of common interest and the two main points taken up with them are retaining of duty free quota of basmati rice and restoring the same for sugar," Union Agriculture Minister Nitish Kumar said.

Speaking after an hour long meeting with the EU delegation led by their Commissioner for Agriculture Franz Fischler, he said India wanted its original quota of 25,000 tonnes of refined sugar exports with zero duty to be restored.

As of now 10,000 tonnes each of raw and refined sugar were being exported to EU with duty exemption, while a 250 per cent duty was being imposed on the rest, he added.

He said in case of basmati rice EU's duty free imports from India had gradually risen from 10,000 tonnes annually to around 1,40,000 tonnes.

There were some moves to lift this concession with reference to the European Union's proposed reworking of their own trade regime.

Kumar said India had objected to it on grounds of unique aroma, length, shape and size of its basmati which deserved duty exemption.

Fischer said "I promise to take up India's case with the member nations which have the required mandate to make the policy changes."

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