India fails to set date for lifting sugar export ban

NEW DELHI: The Union Cabinet on Thursday discussed lifting a ban on sugar exports but did not set a date for such a move.

India is expected to produce record sugar output in the new season that began in October. “The Cabinet discussed the issue of lifting a ban on sugar exports but deferred a decision,” minister for rural development RP Singh told reporters.

Agriculture minister Sharad Pawar on Wednesday said the government planned to lift the ban on exports in the next fortnight. Major sugar stocks on the Bombay Stock Exchange rose in morning trading on Thursday, before the Cabinet meeting.

Mr Pawar said sugar production in the new season would likely reach 22.7m tonnes, up from about 19m tonnes a year ago.

Late last month, a senior government official told Reuters the government was planning to lift the sugar export ban soon and cap exports at 1m tonnes initially.

India banned exports in July to help check inflation as prices soared, and said the restriction would last until the end of the financial year in March. But traders have been clamouring for the ban to be lifted so they can capitalise on favourable global sugar prices.