With sugar fabrication approximated to exceed domestic demand, the administration today permitted sugar exports to the tune of 5 lakh tonnes.

A minister emerging out of the meeting of Empowered Group of Ministers (EgoM) led by Finance Minister Pranab Mukherjee said, "Five lakh tonnes of sugar exports have been allowed."

Another Government minister disclosed that the Empowered Group of Ministers has also permitted exports of organic pulses and organic sugar to the tune of 10,000 tonnes.

The decision comes after a postponement of around 3 months after former Food Minister Sharad Pawar had declared exports of 5 lakh tonnes of sugar during December 2010.

However, the issue was referred to Empowered Group of Ministers following double digit food inflation.

Afterward, Pawar had recently written to the country's PM Dr. Manmohan Singh demanding permitting sugar exports citing surplus sugar output projected this season.