Bowing before the pressure of sugar cooperatives ,an Empowered Group of Ministers (EGoM) on Friday decided to allow additional export of five lakh tonnes of sugar.
Sharad Pawar,Union Agricultural Minister has been advocating the case of additional export for quite a long time. ISMA has also been fighting for more export but Food Minister K V Thomas wanted it to be deferred till Sept-Oct when the stick-estimation of sugar would have been more clear.
The government has allowed exports of one million tones of sugar so far this year in two equal tranches under the Open General Licence (OGL).
“EGoM has approved export of 5,00,000 tonnes of sugar,” highly placed sources said.
Industry had been demanding that the government allow another one million tonnes of sugar exports considering the huge surplus stock and higher global prices.
Almost all political parties from Maharashtra were demanding more exports so that mills can make payments to sugarcane farmers.
Food Minister K V Thomas had said that mills owe Rs 2,591 crore to the farmers till May 15 of the current 2010-11 season (October-September). Another Rs 211 crore sugarcane arrears are pending from previous seasons.
Mills have not been able to make timely payment to cane farmers this season due to fall in ex-mill prices.