India, world's second biggest sugar producer, had in March allowed mills to export 1 million tons of sugar to ease a surplus.
Sharma said during Question Hour that the decision will be implemented as soon as the Directorate General of Foreign Trade (DGFT) got the release order from the Ministry.
He said the global economic crisis, the sovereign debt crisis in Europe and the economic slowdown in developed economies including US had adversely impacted demand for India's exports.
Even though exports in March this year declined by 5.7 per cent - the steepest fall in three years - the export target of USD 300 billion was met in 2011-12 fiscal, he said.
"The exports for the period April 2011-March 2012 were valued at USD 303.7 billion as compared to USD 251.11 billion in April 2010-March 2011, registering a growth of 21 per cent," he said.
However, there was pressure on trade account because of spiralling oil bill. Oil import bill in 2011-12 touched USD 162 billion while gold imports cost USD 60 billion, he said. "There has been a pressure on our trade account," he said.
"Trade deficit increased by 55.8 per cent to USD 184.9 billion in 2011-12 from USD 118.7 billion in 2010-11," he said.