The Food Minister, Mr K.V. Thomas, today said the government will take a decision on allowing sugar exports in the 2011-12 marketing year on November 21.
“We will take a decision on sugar exports on Monday next week,” Mr Thomas told reporters here.
The Empowered Group of Ministers (EGoM) on Food headed by the Finance Minister, Mr Pranab Mukherjee, is meeting on November 21 to discuss the possibility of sugar exports this year, among other issues.
Although Mr Thomas did not disclose the quantity of exports that the government might allow on November 21, sources said the Food Ministry has proposed the export of 5 lakh tonnes initially under the open general licence (OGL) scheme.
Yesterday, the Agriculture Minister, Mr Sharad Pawar, had said the issue would be discussed in the forthcoming EGoM meeting.
The sugar industry has been demanding permission for the export of four million tonnes of sugar in the 2011-12 marketing year (October-September), as the country’s production is estimated at 25-26 million tonnes against annual domestic demand of 22 mt.
The industry is seeking an early decision on sugar exports as global prices are softening and a further delay in announcing the policy would make exports unviable.
In the previous marketing year, the government had permitted 2.6 mt exports, of which 1.5 mt was through the OGL in three equal tranches.
Sugar production in India — the world’s second-largest producer and biggest consumer — rose to 24.3 mt in 2010-11 from nearly 19 mt in the previous year.
During this marketing year, the government has pegged sugar output at 25 mt, while the industry has estimated production at 26 mt.