No proposal to ban sugar exports: govt

The Food Ministry was earlier considering options to restrict sugar exports to keep a check on the rising retail prices

There is no proposal to ban sugar exports despite a likely drop in production in the marketing year starting October 2012 due to poor rains, the government said today.

"No such proposal is under consideration at present," Food Minister K V Thomas said in a written reply to the Lok Sabha.

In May, sugar exports were freed and put under the Open General License (OGL). Before that, the government had allowed 2 million tonne exports for the ongoing 2011-12 marketing year (October-September).

About 1.35 million tonne sugar has been exported so far this year, the minister said in a separate reply.

The Food Ministry was earlier considering various options to restrict sugar exports to keep a check on the rising retail prices, which have touched Rs 37-45 a kg in metros.

"Sugar prices have started showing an upward trend from July onwards. This increase in sugar prices is possibly on account of deficient monsoon leading to market's expectation of lower production in the 2012-13, fluctuation in global prices," the minister said in a separate reply.

Sugar production is expected to be 26 million tonne in the ongoing 2011-12 marketing year.

However, sugar production in the next marketing year starting October 2012 is seen to be lower at 25 million tonne due to poor rains in sugarcane growing states, especially Maharashtra and Karnataka.