India is likely to allow 200,000 tonnes of sugar exports on Tuesday under unrestricted sales, less than half a million tonne permitted earlier, industry sources said, a move seen putting more pressure on global prices. India, the world's top producer after Brazil and the biggest consumer of the sweetener, has flip-flopped on allowing 500,000 tonnes of unrestricted sugar exports, unsure of stocks at a time when the country is struggling to contain high food inflation.
In December, a minister said mills could export the permitted quantity. But a month later, the government referred the issue to a panel of ministers.