Sugar exports ban to be lifted soon

India may lift the ban on white sugar exports within the next 5-10 days, a senior government official said.

"The food ministry is in favour of lifting the ban as soon as possible," the official said.

He said the delay in lifting the ban is due to the discrepancies between the cane output figures of the agriculture ministry and the food ministry.

According to the first advance estimates, released by the agriculture ministry, for the current crop year to June 2007, cane output has been pegged at a little over 283 million tonne. This would imply a sugar output of just about 20 million tonne given a 10 per cent recovery and accounting for cane diversion for sweeteners.

"We (the food ministry) are expecting a much higher output of close to 350 million tonne," the official said.

He said, according to data collected from the cane commissioners of various states the cane output is seen higher than 283 million tonne.

"This would take the sugar output much higher to at least 22.7 million tonne," he said adding that higher supply would be conducive for exports.

"Once the figures are reconciled, a decision will be taken," he said.

Earlier in the month, Agriculture Minister Sharad Pawar had said the government would review the export ban on sugar immediately after Diwali.

Indian sugar mills are allowed to export sugar under the advance licence scheme, which stipulates mills that import raw sugar must export back the same quantum within 24 months.

India had banned sugar exports on June 22 to keep supplies and prices in the country under check.

Around the time when the ban was imposed, India's annual inflation rate, based on Consumer Price Index for Agricultural Labourers, had risen sharply to 7.25 per cent in June from 6.41 per cent a month earlier, primarily because of a sharp increase in prices of food articles, including wheat, pulses, and sugar.

The country had imported a little over 1 million tonne of sugar before the ban was imposed.