Following reports of a bumper sugarcane crop for the current season, the government is likely to review the ban on export of sugar.

During the coming 'sugar year' (October '06 to September '07), the sugar production is expected to be around 227 lakh MT with consumption estimated at 180 lakh MT thereby, leading to sizeable surplus stocks.

The decision to ban the sugar export and go in imports, if need be, was taken to check the rise in sugar prices, which touched Rs 22 kg a few weeks ago, while prices have stabilized at Rs 20-21 a kg in domestic market. The government prohibited export of sugar till March 31, 2007 except for the preferential quota to European Union and US.

The sugar industry has also been pressuring the government to remove the ban and allow it export sugar. Earlier, the government even allowed the sugar mills to sell white sugar, processed from imported raw sugar, at zero duty in domestic market, waiving the conditions to export the same within 24 months, just to control the sugar price spiral in the country.