EGoM may decide on sugar export on Monday

Am empowered group of ministers (EGoM) on food is likely to meet on Monday to decide on permitting export of 5 lakh tonne of sugar and slash minimum export price of onions.

In the last meeting, the EGoM headed by Finance Minister Pranab Mukherjee, had reviewed prices and availablity of sugar in the country, but did not take a decision on its exports in the absence of key ministers.

Food Minister KV Thomas merely said :"The issue (sugar exports) will be coming soon before the EGoM".

Meanwhile, sources said EGoM meeting is scheduled for Monday and besides sugar exports, "minimum export price (MEP) of onion will also come for discussion".

The government had allowed export of five lakh tonnes of sugar under the open general licence (OGL) in December 2010, but subsequently kept it on hold in the wake of high food inflation.

The industry led by Indian Sugar Mills Association (ISMA) has been demanding sugar export on the plea that sugar output will be far higher than the domestic demand this year.

According to government estimates, sugar production is expected to touch 24.5 million tonnes in the 2010-11 crop year (October-September), as against around 19 million tonnes in the previous year.

The domestic demand for this year is pegged at 22 million tonnes.

"One million tonnes (10 lakh tonnes) can be easily exporte under OGL as there is a surplus of three million tonnes this year," the industry body had said.

On high onion export price, sources said the Agriculture Ministry has raised concern over it and is seeking reduction in its shipment prices.

Last week, the government lifted ban on onion exports after farmers' protest over crash in domestic prices, but restricted overseas sale by capping the MEP at$ 600 per tonnes as a precautionary measure to control local prices.

"There are proposals to reduce MEP to as low as$ 400 a tonne," sources said.

At present, sugar is selling at Rs 32-35 per kg and onions at Rs 20-25 per kg in the domestic retail markets.

Onions had shot up to Rs 70-80 per kg in December last year.