India, the world's biggest sugar producer after Brazil, has contracted to export 1.6 million tonnes since the season began on October 1. Dealers have shipped out 1.3 million tonnes so far.
The world's second-biggest sugar producer is likely to export mere 700,000 to 800,000 tonnes of the sweetener in the current season ending September despite producing nearly 28 million tonnes, the Indian Sugar Mills Association said in a statement.
Brazilian producers, who accounted for over 40 percent of sugar exports last season according to the US State Department of Agriculture, are closing mills and reducing sugarcane investments following four straight seasons of excess production, sparking bullish calls on the sweetener.
Sources said there were "prolonged discussions" between Thomas and Agriculture Minister Sharad Pawar on ways to calculate the quantum of subsidy.
Balrampur Chini is hopeful of sugar incentive scheme being introduced by the newly elected Samajwadi Party government which will come to power in Uttar Pradesh.