Heat on govt,sugar export to EU cancelled

Facing the Opposition heat in both the Houses of Parliament over escalating prices,the government on Tuesday decided to withdraw its earlier decision to export 10,000 metric tonnes of sugar to the European Union EU. In a public notice on Tuesday,the Directorate General of Foreign Trade under the Commerce Ministry,headed by Congress leader Anand Sharma,said the allocation of 10,000 MT of white sugar for export of CXL Concessions Sugar to the EU for the fiscal year 2009-10 stands withdrawn.

The move comes within days of the Food Ministry under NCP chief Sharad Pawar rebutting the Congresss claim that the decision was taken at the behest of his ministry. Anticipating Opposition pressure over price rise,the ruling Congress had earlier tried to put the blame for the export of sugar,when its prices in the domestic market have doubled over the past one year,on Pawar,saying it was recommended by his ministry. This had forced the Food Ministry to clarify that the decision was taken on the recommendation of the Commerce Ministry.