STO denies involvement in smuggling of Indian sugar
Local media in India have reported that sugar exports to the Maldives have now been suspended following the incident.
State Trading Organisation (STO) Managing Director Shimad Ibrahim said on Tuesday that the company and its associated entities were not involved in the alleged illegal export of sugar from India to the Maldives.
The assurance comes amid reports of an investigation launched by Indian authorities into the smuggling of 70 tonnes of sugar designated for the Maldives under a special agreement.
Indian government sources have reported that the Directorate General of Foreign Trade (DGFT), operating under the Ministry of Economic Affairs, is investigating the incident, which came to light in October.
According to reports, seven parcels of sugar were shipped from the Nava Sheva port in India, and Sri Lankan customs authorities seized approximately 70 containers in transit. The bill of lading identified Colombo as the final port of destination.
The sugar in question is part of a shipment totalling 64,494.33 tonnes allocated to the Maldives under a special agreement signed between the two governments in April. The agreement also included the export of flour, rice, eggs, onions, and garlic.
Despite a general suspension of sugar exports by India between September and October of last year, exceptions were made for shipments under this agreement.
Local media in India have reported that sugar exports to the Maldives have now been suspended following the incident. However, STO Managing Director Shimad Ibrahim assured that the supply of sugar to the Maldives would not be disrupted.
The DGFT’s investigation is ongoing, and the suspension of sugar exports is expected to remain in place until the matter is resolved.
