Sugar export put on hold; decision to be taken by EGOM

New Delhi, Jan 11 (PTI) In view of high food inflation,
the Indian Food Ministry on Tuesday decided to put on hold the
export of five lakh tonnes of sugar and referred the matter to
an empowered group of ministers (EGOM) on food.
"We have decided to refer the issue of sugar export under
Open General License (OGL) to the EGOM," a senior food
ministry official told PTI.
The government had allowed export of five lakh tonnes of
sugar under OGL on the back of expectations of higher output,
but the ministry was yet to issue the release order to mills.
The decision to refer the matter of allowing sugar
exports to EGOM was taken during a meeting convened by the
Food and Agriculture Minister Sharad Pawar to review the
prices.
Pawar held discussions with ministry officials
immediately after Prime Minister Manmohan Singh held a meeting
with senior cabinet ministers to review the price situation.
The decision to put sugar exports under hold comes a day
after the government decided to exempt sugar imports from
customs duty till March 31, 2011.
Sugar prices, which had touched nearly Rs 50 per kg in
January 2009, has eased to Rs 32-33 per kg.
Sugar production is estimated to be 24.5 million tonnes
in the 2010-11 crop year (October-September), against 19
million tonnes last year.
Food Inflation crossed 18 per cent for the week ended
December 25.