After permitting exports of 5 lakh tonnes of sugar in April, the government today allowed shipments of additional similar quantity of the sweetener.
Last week, the Empowered Group of Ministers (EGoM) on food decided to permit export of 5 lakh tonnes of sugar as the country's production is estimated to outstrip demand after a gap of two years.
Notifying the decision, the Food Ministry said that it would allocate 5 lakh tonnes of sugar equally among sugar mills based on their last three-year's average production.
The government has allowed mills to export sugar produced from its own units and also has given an option for them to source from third party to undertake shipments, the ministry's circular said.
Mills would have to apply for export release order within 30-45 days, it added.
India's sugar production is estimated to rise to 24.2 million tonne in 2011-12 season (October-September) against around 19 million tonne in the previous year. The annual demand is pegged at 22-22.5 million tonne.
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According to industry data, mills have produced around 24 million tonnes of sugar till June 15 of the 2010-12 season.
The government had last year allowed mills to meet their export obligations of about 1 million tonne under the Advance Licence Scheme (ALS).
Retail prices of sugar are ruling in the range of Rs 30-33 per kg in most parts of the country.