With the production outlook improving and prices stabilising, the government has allowed export of 10,000 tonnes of refined sugar to the European Union (EU) despite restrictions. The relaxation has been given by the Directorate General of Foreign Trade and the exports would be undertaken by trading firm, Indian Sugar Exim Corporation during the 2009-10 season ending September. In February, the government was forced to withdraw its decision to permit exports to EU due to a strong objection from the opposition parties as sugar was selling at Rs 50 a kg.
Though sugar prices have dropped significantly to Rs 32 a kg, the exports to EU would be matched by an equivalent quantity of imports from anywhere in the world to ensure domestic supply was not disturbed. India enjoys duty-free export to EU up to a fixed quantity, under a ‘preferential quota’ arrangement.
