Sharad Pawar pressure works, govt liberalises sugar export policy .

New Delhi: The government in a high level meeting chaired by Prime Minister Manmohan Singh decided to free sugar exports by removing quantitative restrictions in order to expedite shipments of the sweetener. This came after Agriculture Minister and NCP chief Sharad Pawar shot off an angry letter terming the UPA's policy on agriculture exports 'ambivalent' and 'against the interest of the farming community'.

Importantly, Pawar had termed the Food Ministry's approach to sugar exports as 'negative' which resulted in losses of over thousand of crores.

On Wednesday, the government did exactly what Pawar wanted.

The government liberalised India's sugar export policy and did away with the quota system, under which each exporter was allotted only a certain quantity.

Also there will no longer be quantitative restrictions on overall sugar exports.

While it is perceived as a victory for Pawar, sources say the government will keep a close eye on the quantum of sugar exports.

It was not just sugar exports. The Prime Minister also stepped in to address the crisis in food grain storage. With an estimated stock of 750 lakh metric tonnes by June 2012, and an acute shortage of storage space, there is an urgent need to liquidate stocks.

The Prime Minister also decided to constitute a committee, headed by Prime Minister's Economic Advisory Council (PMEAC) Chairman Dr C Rangarajan. It will take decisions on distribution and exports of food grains.

There is already an EGOM on food that looks into these issues. It remains to be seen how this committee can make a difference.

Source : ibnlive.in.com