The Food Ministry has issued export order for more than 86,000 tonne sugar, out of the second tranche of 10 lakh tonne that the government allowed for overseas shipments in the 2011-12 marketing year.
Sugar mills cannot export the sweetener without the release order from the Food Ministry. The sugar marketing year runs from October to September.
On February 7, the Empowered Group of Ministers (EGoM), headed by Finance Minister Pranab Mukherjee, had allowed exports of additional one million tonne of sugar.
The decision was notified on February 24 and 10 lakh tonne (LT) was allocated to the mills based on their average output over the last three years.
According to the latest data, the Ministry has issued export release orders for 86,039 tonne as on March 9.
Sugar mills have been given 45 days from the notified day to apply for export release orders, which will be valid for 60 days.
The EGoM had decided to allow the second tranche of sugar exports as the country's output is estimated to outstrip demand in 2011-12.
In the 2010-11 marketing year, the government had allowed 26 LT of exports, out of which 15 LT was through OGL in three tranches.
Sugar production in India -- the world's second-largest producer and the biggest consumer -- is estimated at 25-26 million tonne in this marketing year. The country's annual demand is pegged at 22 million tonne.
In the 2008-09 and 2009-10, sugar production was below domestic consumption at 14.53 million tonne and nearly 19 million tonne, respectively. The country had to import about 6 million tonne of sugar to meet the shortfall.