New Delhi, November 22
Conceding to the long-pending demand of the industry, the government today allowed export of one million tonnes of sugar, a decision the industry said would help improve cash flow and enable them to make timely payment to cane growers.

An Empowered Group of Ministers on Food (EGoM), headed by Finance Minister Pranab Mukherjee, approved exports as the country’s sugar production is expected to exceed the domestic demand by 3-4 million tonne in the 2011-12 marketing year.

Food Minister KV Thomas later said the EGoM felt it would be safer to allow exports of one million tonne even though the demand was for at least three million tonne sugar export.

Meanwhile, the stock-holding limit is valid till the end of this month. On whether permitting exports could affect retail prices, Thomas said the government had to balance the request of farmers as well as consumers. “Farmers wanted export,” he said. Sugar production in India, the world’s second largest producer and biggest consumer, is estimated at 25 to 26 million tonne in this marketing year.