India's biggest cane-producing state is likely to lift restrictions on imports of raw sugar, the Financial Express newspaper reported on Tuesday, citing an unamed senior state government official.
The northern state of Uttar Pradesh in November banned imports of raw sugar, following agitations by farmers protesting against overseas purchases of raws, which they said suppressed sugarcane prices and curtailed their bargaining power with mills.
The state was "keenly viewing" the possibility of lifting the restriction on imports of raw sugar, the paper said, citing a senior government official from Uttar Pradesh.
An acute shortage of cane trimmed the country's sugar output to 14.7 million tonnes in 2008-'09, down 44% from a year ago.
Falling output forced India, the world's top consumer and the biggest producer behind Brazil, to allow tax-free imports of raws and whites in April to improve supplies in the domestic market.
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