NEW DELHI: India again postponed a decision on sugar exports, raising the chance that approval for up to 1 million tonnes of sales could be delayed yet further as the government may face criticism of its food policies when parliament resumes on Tuesday.
Ministers with power to decide on exports now look likely to meet on Nov. 22, official sources said, after their talks were rescheduled twice in less than a week, most recently to Monday.
"The meeting was called off as most ministers were not available. Also, the finance minister had to attend an urgent political meeting as parliament starts from tomorrow.
No time has been fixed so far for Tuesday's meeting," said a government source who is involved in the process.
India, the world's biggest consumer of sugar and the second-largest producer, is expected to approve between 0.5 million and 1.0 million tonnes of white sugar exports initially and Food Minister K. V. Thomas has agreed with Farm Minister Sharad Pawar on "a certain quantity".
Indian exports are expected to be negative for world sugar prices but the delays of the meeting on exports had only limited impact on Liffe white sugar futures on Monday.
The sugar industry in India is keen for exports but there is concern it would come at a bad time given worries over domestic food prices.
A senior industry official who did not wish to be identified said he thought India would permit exports but, if opposition criticism becomes too shrill, there might be further delays.
India's inflation is running at more than nine percent and the Congress-party led coalition government has been attacked by the opposition and some allies over its inability to bring prices down.
The central bank has said prices should abate by the end of this year but there are no signs of a slowdown yet, despite unrelenting increases in the cost of borrowing.
Local sugar prices fell after the government put off the decision. India's December sugar futures extended losses to more than 2 percent on Monday.
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