Turf war in govt over sugar export control

An upset Agriculture Minister Sharad Pawar met and raised the issue with Finance Minister Pranab Mukherjee.

Besides fixing quota for the traders, the Directorate General of Foreign Trade (DGFT) in the Commerce Ministry made it mandatory for exporters to get registration certification, contrary to the order of the Food Ministry which said no permission was required for the overseas shipments.

On its part, the Food Ministry issued a notification yesterday, removing all restrictions on sugar exports ,"within 48 hours of receiving minutes of the meeting, chaired by Prime Minister Manmohan Singh on the issue on May 2," a highly placed official said.

However, the DGFT was quick enough to undo the Food Ministry's decision to remove all export restrictions.

Besides Pawar and Mukherjee, Commerce and Industry Minister Anand Sharma, Food Minister K V Thomas were among those present in the meeting taken by the Prime Minister. It was decided in the meeting to do away with the export curbs on sugar so that farmers' cane arrears can be paid by the mills.

"Both the Food Ministry and the DGFT have issued separate notifications. There is some confusion. This will be sorted out...The DGFT will issue clarification shortly," Pawar told reporters before his meeting with the Finance Minister.

This is the second occasion in the last two months that Pawar is at loggerheads with the Commerce Ministry on export restrictions on agri products. Earlier, he had put pressure on the Commerce Ministry to get the cotton exports freed.

Indian Sugar Mills Association has demanded withdrawal of the DGFT notification.