India’s Directorate-General of Foreign Trade (DGFT) is investigating irregularities surrounding 70 tonnes of sugar bound from India to the Maldives being diverted to Sri Lanka, Indian media sources have reported.
Newspapers reported that India, under an agreement granting preferential consideration to the Maldives, had allocated a specific export quota of 64,494.33 tonnes of sugar to the Maldives. While India had effectively halted sugar exports for the 2023/2024 season due to low production, it had permitted limited quantities to a few countries, including the Maldives.
Since the investigation was launched, exports to the Maldives were virtually at a standstill, and Sri Lankan officials have halted clearances at Colombo, Indian news sources confirmed via trade sources.
According to Indian news reports, on 5 April, India authorised the export of rice, wheat flour, dhal, sugar, eggs, potatoes, and onions, as well as stone aggregate and river sand, to the Maldives under a preferential bilateral agreement.
The DGFT, an agency under India’s Ministry of Commerce and Industry, is responsible for administering laws on foreign trade.
