Reduced India sugar quota won't affect supply, STO says

State Trading Organisation (STO) said on Monday that the supply of sugar to the Maldives will not be disrupted, even as allegations emerge that a portion of the sugar quota allocated by India to the Maldives under a special agreement has been illegally redirected.

Indian authorities have initiated an investigation into claims that 70 tonnes of sugar intended for the Maldives were smuggled by individuals managing the shipment. The Directorate General of Foreign Trade (DGFT), under the Ministry of Economic Affairs, reported that the issue was raised in October, prompting the suspension of sugar exports to the Maldives pending the investigation.

An official from STO, the intermediary between the Maldives and India for the sugar agreement, confirmed that some of the sugar quota is under scrutiny. However, the official assured that this will not impact the availability of sugar in the Maldives and that the situation remains manageable.

According to reports, seven parcels of sugar were shipped from the Neva Sheva port in India. Maldivian customs authorities intercepted about 70 containers of sugar with documentation indicating Colombo as the final port of destination. The shipment was reportedly in transit at the time of seizure.

The sugar in question is part of a larger allocation of 64,494.33 tonnes agreed upon between the Maldives and India under a bilateral arrangement signed in April. The agreement facilitated the supply of sugar, flour, rice, eggs, onions, and garlic to the Maldives despite India's restrictions on sugar exports between September and October of the previous year.

STO has reiterated that it will ensure an uninterrupted supply of sugar in the Maldives and is working closely with authorities to address the situation.