Sep 3 2010 6:13PM
NEW DELHI (Dow Jones)--India may allow mills to export sugar in two phases from September to meet a mandatory obligation that had been shelved for about two years because of a shortfall, a government official said Friday.
Under the government's advance license scheme, Indian mills imported free of tax 2.07 million metric tons of raw sugar between Sept. 21, 2004, and April 15, 2008, on the condition that the mills would re-export an equal quantity of white sugar to protect the domestic industry and farmers.
An expected bumper crop in the year starting on Oct. 1 has created room for the exports, the official, who didn't want to be identified, told Dow Jones Newswires.
The mills may be allowed to export 25% of the total obligated quantity by the end of November and the rest by March 31, 2011, he added.
India, the world's largest sugar consumer, expects to produce between 25 million and 26 million tons of sugar in 2010-11, compared with an annual demand of around 23 million tons.
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