Global sugar brokerages and Indian industry have been scaling down estimates for India's 2010/11 output, which is becoming more crucial in the world market after bad weather hit the crop in Australia, a leading exporter. The government has said output will determine export levels from India, the world's biggest consumer and second-biggest producer after Brazil.
The country has already allowed exports of nearly 1.2 million tonnes under the Advance Licence Scheme (ALS) against earlier imports when there was a supply shortfall. For unrestricted exports - exports under Open General Licence (OGL) - the government has given confusing signals.
In December, Farm Minister Sharad Pawar said mills could export 500,000 tonnes of sugar under OGL, but the government, bowing to public pressure over soaring food prices, has referred the issue to a panel of ministers. The panel has yet to take decision over the issue.
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