The government Thursday said that it will allow sugar exports, as there was surplus in the domestic market.
The decision was taken by the cabinet committee on economic affairs (CCEA) on the proposal sent by the department of commerce to continue export of sugar without any quantitative restriction.
"This (decision) is expected to give a positive signal to exporters and the international community on the efforts of the government to pursue a stable, long term and consistent export policy regime in the agriculture sector," the CCEA said in a statement.
Welcoming the decision, the Indian Sugar Mills Association (ISMA) said this would help in exports of raw sugar, which is generally shipped in bulk.
ISMA Director General Abinash Verma, however, demanded that the system of making export registration should be abolished to help boost shipments.
The association has been demanding easier norms to export sugar due to surplus domestic production. It has targeted exports of 3-4 million tonnes of sugar in the 2013-14 marketing year (October-September) as against about 3,25,000 tonnes in the previous year.
Sugar production in India, the world's second-largest producer and biggest consumer, is projected at 25 million tonnes in 2013-14 against the annual domestic demand of 23 million tonnes, reports media.