
Even the Congress party on Tuesday described the government’s decision to export the commodity as wrong.
What has baffled many is the fact that the decision came at a time when the ruling UPA government is desperately trying to bring down prices of the sweetener in the domestic market.
“If any such decision has been taken, then only concerned officials or Agriculture Minister and his Ministry will be able to give information regarding the same. However, if any such decision has indeed been taken then it cannot be termed right,” Tewari said.
The Central government had on Monday allowed the export of 10,000 tonnes of sugar to the EU. The DGFT has allocated a quantity of 10,000 tonnes of white or refined sugar for export to the EU for the fiscal 2009-10 (sugar season October 2009 - September 2010) through state-run trading firm Indian Sugar Exim Corporation.
Indian Sugar Exim Corporation, which is the designated agency for export of sugar to the EU, will export the commodity under a preferential quota agreement, a DGFT notice said.
Although, officially there in no ban on export of sugar, prior approval from authorities is required, which the Food Ministry is not granting since January 2009.
Sugar prices in India have been on the rise due to supply shortage. Sugar prices rose by 58.96 percent in January year-on-year.
The exported sugar will be received by the EU duty free, under a special concessions provided for after conclusion of the General Agreement on Trade and Tariff.