Lifting ban from sugar exports to be examined shortly: Pawar

New Delhi, Dec 13 (UNI) Minister of Agriculture, Consumer Affairs, Food and Public Distribution Sharad Pawar today said the sugar industry's demand of lifting the ban would be examined earnestly by the Government.

''The demand would be considered by the Government, and appropriate action would be taken on them shortly,'' Mr Pawar told reporters here at the 72nd annual general meeting of Indian Sugar Mills Association (ISMA).

Mr Pawar said the decision of lifting the ban on the sugar exports would be taken in the Cabinet meeting, adding that this is the proper time to lift the ban from the sugar industry.

Over the years, sugar industry has grown manifold, which now not only meets the domestic demand for sugar but also produces enough to make a mark, though small, in the international sugar market, the minister said.

The ban was imposed on July 2 this year to curb rising prices due to tight supplies, and was to run until the end of the financial year in March.

ISMA President Chandra Sekhar Nopany said lifting the ban would help stabilise global sugar prices after a sharp recent fall.

''Global sugar prices have fallen from an average 400 dollars a tonne when the ban was imposed to 349 dollars a tonne now'' Mr Nopany said.

Mr Pawar, however, emphasised on exploiting the full potential, saying the country has the potential of producing about 7,000 MW power from bagasse, of which only about 750 MW is being produced.

He said there is need to encourage more factories to generate power from bagasse.

The minister welcomed Petroleum Minister Murli Deora's decision to blend five per cent ethanol with petrol from November, 2006 that has created a demand for almost 600 million litres of ethanol per year.

The Petroleum Ministry is contemplating to increase blending the percentage to 10 per cent in phase-2 from June next year, Mr Pawar said, adding that this would not only help the country save foreign exchange by reducing petroleum imports but also enhance the viability of the existing and proposed sugar factories.

Current cold weather in northern parts of the country, which grows most of the country's wheat, was conducive and output in 2007 could top 74 million tonnes, Mr Pawar said.

The country is the second-largest sugar producer and biggest consumer.

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