The empowered group of ministers (EGoM) on food, headed by Finance Minister Pranab Mukherjee is likely to meet on November 21 for considering a proposal to allow sugar exports for this marketing year that started last month, according to Food Minister K V Thomas. Meanwhile, Farm Minister Sharad Pawar also affirmed that issue of sugar exports will be discussed in the EGoM on November 21.
Indian sugar exporters are demanding exports for the sweetener since quite some time but the government has been reluctant amid concerns that it will stoke up the already high inflation. Government fears that allowing sugar exports may underpin commodity’s prices and with food inflation hovering at elevated levels, rising sugar prices will only add to the inflationary pressure on the economy.
Sugar production in India - the world's second largest producer and biggest consumer, is forecasted to be around 25-26 million tonnes in the current 2011-12 marketing year against an annual demand of around 22 million tonnes. Thus, the sugar industry is in quest of early decision on sugar exports policy as they believe that any further delay in announcing the policy would make exports unviable because global prices of the sweetener are softening.