The Empowered Group of Ministers, EGoM has decided to allow further export of one million tonnes of sugar in view of surplus production and reduce export price of basmati rice to 700 US dollar a tonne from 900 US dollar.
The decision to this effect was taken at an EGoM meeting held in New Delhi this evening. The panel, headed by Finance Minister Pranab Mukherjee, also approved continuation of non-basmati rice exports of up to four million tonnes.
Last year, the government had allowed one million tonnes of sugar exports under the open general licence for the 2011-12 marketing year, that started from October 2011.
The Panel decided to allow the additional quantity as the country is all set to produce 26 million tonnes of sugar in the current marketing year, as against the annual domestic demand of 22 million tonnes.
Apart from offloading surplus stock, the move is expected to ease liquidity crunch that mills are facing to make timely payment to sugarcane growers.
