The Empowered Group of Ministers (EGoM) on food scheduled to meet on Thursday-October 20, to discuss export policy and prices of food grains may allow fresh sugar exports, but in limited quantities at regular intervals.
Though, the EGoM meeting is about price of some of the foodgrains items, policy towards exports but the EGoM may suggest the Food Ministry to come up with specific proposals in the next meeting for sugar export. In the 2010-11 marketing year, the government had allowed exports of 2.6 million tonnes, out of which 1.5 million tonnes was permitted in three equal tranches.
Union Agriculture Minister, Sharad Pawar has favoured exports of sugar in limited quantities either on monthly or weekly basis as bulk exports could depress international prices. “Our decision to allow sugar exports should not impact global prices,” he said.
In the current sugar year, according to industry estimates Sugar production is seen at 26 million tonnes, while consumption is likely to be around 22 million tones. By the end of current year, India is likely to have a sugar surplus of 9.8 million tonnes.
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