New Delhi: The Election Commission has cleared a government proposal to offer sugar mills hit by falling global prices incentives to export, a source at the authority said on Monday.
Sugar firms resumed exports in January after a ban on sales was lifted, but lower world prices have made overseas sales unattractive at the same time as India is expecting a bumper domestic crop in the year to September.
That combination forced the government to offer transport and freight incentives to mills that some analysts have calculated may be worth $30 to $35 (Rs) per tonne.
But the proposal was referred to election officials due to polls in the key sugar producing state of Uttar Pradesh.
The official told Reuters the commission had decided that as the proposal had been widely publicised by the media any political benefit it may bring had already been gained.
The country is likely to churn out a record 26 million tonnes in the current sugarcane crushing season, trade officials say.
India produced 19.3 million tonnes a year ago.