New Delhi: In a relief to mill owners, who are expected to sit over abundant quantity of sweetener due to an estimated output of 240 lakh tonnes in 2006-07, the government has notified complete lifting of sugar exports ban that was imposed on July 4, 2006.

"The prohibition shall not apply to exports of sugar executed under valid releases order issued by Directorate of sugar up to the limit executed by the government, after which fresh approvals will be taken for further releases," the notification issued by Directorate General of Foreign Trade said last night.

The Union Cabinet had taken a decision to revoke the complete export ban on January 11.

Earlier as a first step towards restoring the permission, government allowed export of refined sugar against Advance Licenses in lieu of raw sugar imports that was necessitated to keep the sugar mills running in the wake of low availability of cane in previous seasons.

Though the international prices have crashed from 470 dollars a tonne when the ban was imposed to around 320 dollars a tonne, it would still be a worthwhile proposition due to the expected suspension of supplies of seven million tonnes by European Union.

This is also aimed at thwarting any move by farmers to shift from sugarcane cultivation during the coming season in the wake of falling domestic prices of sugar.

With the opening stock of 40 lakh tonnes at the start of the season in October, the country is likely to have a sugar availability of about 280 lakh tonnes during the current season. This is against the domestic annual consumption of 190-195 lakh tonnes.