New Delhi: India, the world’s second-biggest sugar producer, will refrain from subsidizing exports of the raw variety, food minister Ram Vilas Paswan said.

“As of now there is no plan to provide any subsidy for sugar exports," Paswan said in an interview in New Delhi on Wednesday.

India shipped 1.2 million metric tons of raw sugar in the year ended September, including 700,000 tons with financial incentives from the government, according to the Indian Sugar Mills Association. The South Asian nation sold a total of 2.1 million tons last year, the group estimates.

India announced a subsidy for raw production and exports in February to help mills clear dues to farmers, a move opposed by Brazil and Thailand. The incentive of Rs3,371 ($55) a ton wasn’t extended beyond September, the food ministry says.

Sugar production in India may total 25 million tons to 25.5 million tons in the year started 1 October, according to the association. Domestic stockpiles were seen at 7.5 million tons at the start of October, it said. Brazil is the biggest sugar producer.

Separately, the minister said the government has no plans to export wheat from state stockpiles. Bloomberg

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