Sugar export on hold; EGoM to decide

In view of high food inflation, the food ministry today decided to put on hold the export of 500,000 tonnes of sugar and referred the matter to an empowered group of ministers (EGoM) on food.

“We have decided to refer the issue of sugar export under open general license (OGL) to the EGoM,” a senior food ministry official said.

The government had allowed export of 500,000 tonnes of sugar under OGL on expectations of higher output, but the ministry was yet to issue the release order to mills.

The decision to refer the matter of allowing sugar exports to EGoM was taken at a meeting convened by Agriculture Minister Sharad Pawar to review the prices.

 

Pawar held discussions with ministry officials immediately after Prime Minister Manmohan Singh held a meeting with senior cabinet ministers to review the price situation.

The decision to put sugar exports on hold comes a day after the government decided to exempt sugar imports from customs duty till March 31.

Sugar prices, after touching Rs 50 per kg in January 2009, have eased to Rs 32-33 a kg. The production is estimated to be 24.5 million tonnes in the 2010-11 crop year, against 19 million tonnes last year.