Sugar stocks were in demand after government said that mills will be allowed to export without its prior approval from the government till the end of this year.
"The government has decided to extend the allowance of not requiring release orders for exports under the open general license up to Dec. 31, 2008, or till further orders," the food ministry said in a notification on its Web site.
Sugar exports have come to almost a standstill, S.L. Jain, director general of the Indian Sugar Mills Association, said last month.
Production may drop to 20mn tons in the year ending September 2009, lower than the August forecast of 22mn tons, he said.
