New Delhi, Jan. 5: The government is exploring the possibility of fully lifting the ban on sugar exports as it anticipates a glut in the domestic market, leading to a price crash.

“The issue of lifting the ban will be taken up in the next cabinet meeting,” agriculture and food minister Sharad Pawar told reporters here on the sidelines of a conference on bio-diesel.

Sugar mills are under increasing strain as they are confronted by falling realisations and rising prices of cane owing to the government policy of higher remuneration to the farmers.

The estimated sugar production of 240 lakh tonnes is far in excess of domestic consumption at 185 lakh tonnes. Total available stocks are estimated at 270 lakh tonnes, considering carry-over stocks.

Pawar said the government would look at ways to utilise or dispose the surplus stocks to prevent prices from falling. However, Indian exporters would face stiff competition as prices are ruling at low levels in the international market due to the abundant availability of the commodity.

Pawar also ruled out export subsidy to help exporters take on competition.