An Empowered Group of Ministers (EGoM) on food, headed by Finance Minister Pranab Mukherjee, is scheduled to meet on Friday to decide on allowing more sugar exports and lifting ban on wheat exports.
The government has so far this year allowed exports of 1 million tonnes of sugar in two equal tranches under Open General Licence (OGL).
"The EGoM meeting is scheduled for August 12. Sugar and wheat exports are on the agenda," a highly placed source said.
Indian Sugar Mills Association (ISMA), the apex industry body for sugar sector, has been demanding that the government should allow another 1 million tonnes of sugar exports considering the huge surplus stock and higher global prices.
Not only industry, almost all political parties from Maharashtra are demanding more exports so that mills could make payments to sugarcane farmers.
Yesterday, Food Minister KV Thomas had said in the Lok Sabha that mills owe Rs 2,591 crore to sugarcane farmers till May 15 of the current 2010-11 season (October-September).
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Another Rs 211 crore sugarcane arrear is pending from previous seasons.
Mills have not been able to make timely payment to cane farmers this season due to liquidity crunch following a decline in ex-mill prices.
While Agriculture Ministry is in favour of soon allowing more exports, the food ministry wants to defer the decision till September by when it would come to know the actual closing stock of sugar in this season and will get a clear picture of likely production in the next season.
Sugar production of India, the world's second-largest producer and biggest consumer, is estimated at 24.2 million tonne in the 2010-11 season as compared to around 19 million tonne last year.
The annual demand is pegged at 21-21.5 million tonne.
On wheat export, which has been banned since early 2007, sources said the issue may be discussed again but export is unlikely to take place given low global prices.
In its last meeting, which was held early July, the EGOM had deferred the decision to allow wheat exports.