Sugar supplies to EU may be resumed

NEW DELHI: India may resume annual exports of 10,000 tonnes of duty-free sugar to the European Union, the Economic Times newspaper said on Wednesday, following better crop prospects and a drop in domestic prices.

The shipments under a WTO rule were halted in February after the government bowed to severe criticism in the wake of a global surge in prices and lower domestic output. The trade ministry would like a panel of ministers of take a view on the availability of sugar before formally allowing shipments, the paper said, quoting an unnamed official.

Trade and government officials believe India's sugar output would be around 18.5 million tonnes in the year to September, up from 14.7 million tonnes in the previous year. Higher output estimates have helped domestic prices drop more than a third since a record high of Rs 3,972 ($84.6) on Jan 7.