New Delhi: Nonchalant to the soaring inflation the Central government gave its nod to the export of sugar and rice. The government’s announcement just before the festive season may have an adverse effect on the market resulting in further hike in food prices.

Under pressure from the industrial organisations, the decision of allowing the sugar export may make a hole in consumer’s pocket. Sugar, which is still a dearer food item, costs Rs 34/kg in New Delhi.

In a meeting of Empowered Group of Ministers (EGoM), headed by Finance Minister Pranab Mukherjee allowed the export sugar and rice. The group expressed its concern over rising inflation but gave a nod to the proposal of exporting 500,000 tonnes of sugar.

Notably, Food and Consumer Affairs Minister KV Thomas has always been maintaining that the rising inflation leaves no scope for giving clearance to the export of sugar before the next crushing of sugarcanes.

But after his the nod of his Ministry gave a nod to sugar exports, Thomas is singing a different tone. “In order to help the farmers, the EGoM has given the nod,” he said.

(JPN/ Bureau)