near halt. Following the launch of the DGFT investigation into the diversion, exports of sugar to Maldives have almost come to a standstill REUTERS EMMANUEL FOUDROT
Part of sugar shipments from India missing, says Maldives trading body
tackling diversion. State Trading Organization begins ‘scrutinising’ imports from India
Maldives has said a part of sugar shipments to be imported from India through special provisions under a bilateral agreement is “missing”.
Male has begun “scrutinising” the shipments from India, an official of Maldives State Trading Organization (STO) told local media.
The official was responding to fears over the availability of sugar in Maldives following a November 20 businessline report that the Directorate-General of Foreign Trade (DGFT) has begun a probe into sugar exports from India to Maldives being diverted to Sri Lanka.
Following the launch of the DGFT investigation into the diversion, exports of sugar to Maldives have almost come to a standstill, trade sources said.
Situation manageable
The official said the missing part of the sugar shipments were part of the allocation made under the 64,494.33 tonnes by India to the Maldives to meet its domestic requirements.
These shipments are allowed through the Mundra, Thoothukudi and Nhava Sheva sea ports besides the Inland Container Depot, Tughlakabad.
Though India has not allowed sugar exports in the 2023-24 and 2024-25 seasons, it permitted shipments on a government-to-government basis for “vulnerable” countries earlier this year.
On April 5, 2024, the DGFT issued a notification under the bilateral agreement with Maldives permitting rice, wheat flour, dal, sugar, eggs, potatoes and onions, besides stone aggregate and river sand.
sri Lanka’s probe
The STO official said the supply of sugar to the Maldives “will not be disrupted” and the situation is “manageable”.
The official said the imports into Maldives could be done before March 31, 2025.
Trade sources told businessline that at least seven parcels of sugar set to be exported to Maldives had been detained at Nhava Sheva on the suspicion that it was being diverted to some other place.
Sri Lankan Customs officials have detained about 70 containers of Indian sugar diverted to Colombo after an alert following the businessline report that part of export consignments were being diverted.
Sri Lanka officials have stopped clearance of such diverted cargo at Colombo. They have begun a separate probe against buyers based in the country. Over 80 container loads of sugar from India, permitted for exports to the Maldives, landed in Colombo, Sri Lanka, until mid-October.