Authorities in India and Sri Lanka have launched an investigation after a shipment of sugar sold to the Maldives at special rates under a bilateral trade agreement was diverted to Sri Lanka.

According to Indian media, the Directorate General of Foreign Trade (DGFT) and some Sri Lankan agencies are investigating a shipment of 64,000 tonnes of sugar exported from India on October 25.

Indian media reported that part of the shipment had been found in Sri Lankan ports. Authorities have halted the clearance of the shipment and are looking into the Sri Lankan companies that made purchases.

Some reports said that India had halted sugar exports to the Maldives, but an Indian official who spoke to Adhadhu did not confirm these reports.

According to Indian media, more than 80 containers of sugar sold to the Maldives at special rates have been shipped to Sri Lanka till October this year.

Citing documents circulating on social media, Indian media stated that thousands of dollars worth of sugar sold to the Maldives has been diverted to other countries including Malaysia.

The Maldives government has not yet commented on the matter.

Under the existing agreement with the Maldives, India sells rice, sugar, flour, potato, eggs, onions, lentils, stone and gravel at special rates.