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The cabinet will decide on incentives for raw sugar production on Tuesday, Farm Minister Sharad Pawar told reporters, as part of strategy to arrest falling prices due to a glut of refined sugar in domestic markets.
"India has been exporting only white sugar, it has not been exporting raw sugar and WTO rules allow us to give incentives for production of new product like raw sugar," he said.
The minister said the world's biggest producer after Brazil could export at least 4 million tonne of raws in the next two years.
Sugar mills have sold only about 700,000 tonne of raw sugar for export so far in the 2013/14 season despite industry expectations of 4 million tonne because of low prices.
