New Delhi, Jan 4 (UNI) The Government today formally gave its nod for limited exports of sugar by the companies under Advance License System (ALS) to meet their re-export of refined-product obligation against the imports of raw sugar earlier.

The sugar mills across the country have the obligation to re-export around 9 lakh tonnes of sugar, said Mr S L Jain, Director General of the Indian Sugar Mills Association (ISMA).

The Cabinet, at its meeting held here on December 18, 2006, had permitted sugar exports allowing the industry meet its obligation of re-export of the refined sugar. But, the industry had since been waiting for a formal nod to go ahead.

Delay in formal approval for starting exports had worried exporters as the prices in the international markets were moving low.

India is poised for a bumper production of sugar pegged at 22.7 million tonnes in the sugar season ending September 2007 as against 19.3 million tonnes last year.

India's annual domestic consumption ranges between 185 to 190 lakh tonnes.

Industry sources said that currently domestic prices are higher at around Rs 15,000 per tonne which is around 338.4 dollars, as against the prices prevailing in the international markets hovering at about 330 dollar a tonne.

Exports under the scheme have to be made within six months to a year.

In the wake of overall higher sugar production worldwide, the prices could fall further, the sources say.

India, the world's second-largest sugar producer after Brazil and biggest consumer, had banned all sugar exports in July as retail prices rose in the domestic market.

The industry had been pressing for lifting of the ban to take advantage of soaring global prices, but by December the prices had cooled down.

UNI