The government on Tuesday notified its decision to allow five lakh tonnes of sugar exports, nearly a month after its approval by the panel of ministers.
On March 22, the empowered group of ministers on food had allowed exports of 5 lakh tonnes of sugar under Open General License (OGL) as the country's sugar production is estimated to outstrip demand after a gap of two years.
The retail prices of sugar have also declined sharply in the national capital to Rs 30-32 per kg from nearly Rs 50 per kg in January 2010.
Out of five lakh tonnes, the food ministry has reserved 51,500 tonnes for neighbouring countries and the remaining quantity would be allocated among sugar mills based on their last three-years average production, a senior official said.
Mills would have to undertake exports within 60 days after they get release order from the ministry, he said.
India's sugar production is estimated to rise to 24.5 million tonnes in 2011-12 season (October-September) against 19 million tonnes in the previous year. The annual demand is pegged at 22 million tonnes.
The government had 2010 allowed mills to meet their export obligations of about one million tonnes under the Advance Licence Scheme (ALS).