Tuesday, March 28 2006 13:41 Hrs (IST) - World Time -

Dimapur (Nagaland): Sugar mills can take up exports only after fulfilling their levy quota obligation for domestic market, Union Agriculture and Food Minister Sharad Pawar has said.

"We are not opposed to sugar exports, but the mills have to fulfil their mandatory levy quota obligation for domestic market," Pawar told sources.

Pawar's observation assumes significance at a time when sugar mills with re-export obligation on their last year's raw import are gearing up for exports, riding high on positive production prospects during the current sugar year, which runs from October to September in India.

"The mills can fulfil their re-export obligation on their previous raw sugar import," he said. Sugar production is pegged at 182-183 lakh tonne for2005-06 as against 123 lakh tonne previous year.

During 2004-05, mills in India imported nearly 23 lakh tonne raw sugar to tide over supply shortage.

To a query on extending bonus on wheat procurement price, he said "We are not thinking about the issue."

The wheat procurement in the country during current Rabi marketing season has already started in Madhya Pradesh and would start in Punjab, Haryana and Uttar Pradesh after Baishakhi.

Major wheat producing states are demanding bonus over and above the MSP for wheat.

The minister put the country's farm sector growth at 3.4 per cent for 2005-06 as against 1.1 per cent growth of last year.