The Government is likely to take a decision on allowing sugar exports in the 2011-12 marketing year, which commenced this month, only after Diwali, as mills are yet to exhaust the export quota of 2010-11, the Agriculture Minister, Mr Sharad Pawar, said today.

The sugar season runs from October to September.

“The Government permitted 1.5 million tonnes of sugar exports in three equal tranches under open general licence (OGL) scheme last season. The third tranche of exports has not yet been lifted. If it is lifted, then the Government will take a decision on more exports. By that time, Diwali will be over,” Mr Pawar told PTI in an interview.

That apart, the Minister pointed out that crushing operations in the current season are yet to start because of a labour shortage amid the festive season.

The Food Minister, Mr K.V. Thomas, had also said yesterday that a decision on sugar exports would be taken in the first week of November after evaluating the production estimates for the current season, as well as the price situation in both domestic and global markets.

He had also said that sugar exports will be allowed in phases and the quantity of shipments will be decided after reconciling the production estimates.

The Food Ministry has pegged the sugar output at 24.6 mt this year, up from 24.3 mt in 2010-11. However, Mr Pawar is of the view it will be 25 mt. The sugar industry has estimated 26-26.5 mt production this year.

The Government had permitted 2.6 mt exports last year, both under OGL and Advance Licence Scheme, as the country’s production exceeded demand after a gap of two years.

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