New Delhi:
After NDTV reported that the Centre has cleared the export of sugar despite a ban on it, the government has now cancelled the export order to European Union (EU) nations.
Sugar exports at this time could have done serious political damage with the Opposition already hitting out in Parliament on price rise.
Though sugar exports are banned, the Director General of Foreign Trade (DGFT) had issued a notice on February 15 allocating 10,000 Metric tonnes of white sugar to the European Union (EU). The sugar exim corporation was to export the sugar.
Even to many in the government the move comes as a surprise, as just last week the Indian government had said no to a request for sugar from the Nepalese government and the reason for the "No" was sugar shortage in the country.
Exporting sugar at this time is certainly bad economics and bad politics. To beat sugar shortage and rising prices, the government imported raw sugar late last year.
But then why did the DGFT clear the exports?
The government says export clearance is to honour contractual obligations.
But an all out blame game has started between various ministries.
While the Agriculture Ministry says Commerce Ministry handles sugar exports, the Commerce Ministry says authorisation was given at the request of Sugar Exim Corporation, which is under the Agriculture Ministry.
NDTV has learnt that the Food Processing Ministry had objected to the export.
Given the sugar shortage and its rising prices, there are red faces in the Congress party and the Opposition is asking for answers.
"It is something that the government and the various ministries should answer," said Manish Tiwari, Congress Spokesman.
"This export notification should be withdrawn and a probe should be ordered," said Leader of Opposition in Rajya Sabha Arun Jaitley.