The government has allowed export of 10,000 tonnes of sugar to the European Union (EU), at a time when the UPA regime is desperately trying to bring down prices of the sweetener in the domestic market.
The directorate general of foreign trade (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 ,the Indian Sugar Exim Corporation.
The 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 is 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 per cent 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.
Source : fnbnews.com