New Delhi, March 22: The government today allowed sugar exports of up to five lakh tonnes amid sharp decline in retail prices and prospects of surplus production in the current season.
The decision was taken by an empowered group of ministers (EGoM), headed by Finance Minister Pranab Mukherjee.
Earlier, there were differences on the export quantity, as the Agriculture Ministry favoured five lakh tonnes, while the Finance Ministry was wanted to restrict it to two lakh tonnes.
Sources said, as a caution against the risk of price rise, the exports have been limited to five lakh tonnes, although the country is estimated to have an exportable surplus of 1.5 million tonnes in the 2010-11 sugar season (October-September).
“Yes, we have allowed export of five lakh tonnes of sugar,” a senior minister who was part of the EGOM told reporters after the meeting.
–Agencies