``It (government's decision) is a welcome step. But we are more concerned about preventing cheaper imports coming into the country,'' national federation for cooperative sugar factories managing director MS Marathe told PTI.

The private sector felt India would not be able to do much on the exports front as global prices for sugar were lower.

``There is not much scope for sugar exports. Maybe, a limited amount can be exported,'' Tilak Bhar of DCM Sugar and vice-president of Indian Sugar Mills' Association said.

Marathe said the cooperatives saw some scope for exporting value-added sugar like cubes and customer packs.

``But we will have to incur tremendous loss in exporting the allocated quota,'' he said, adding the cooperative units would approach the government for ``necessary help.''

Cooperatives did not want to lagbehind, when they had got this chance to make a impact in the global market, he said.

The cabinet committee on prices (CCP) last night allowed exports of 25,000 tonnes of value-added sugar.

Asked about the likely loss the industry could incur on exports, Marathe said while the global price for sugar was around Rs 8,500 a tonne, domestic wholesale prices were around Rs 13,500 a tonne.

The Rs 5,000 a tonne gap would be large to bridge, he said.

Bhar said India would find it hard to export sugar from the free sale quota allotted to domestic millers as it was higher than landed prices of imported sugar.

As per the sugar control system in the country, domestic millers have to give 40 per cent of their total production for the public distribution system (PDS) at a price determined by government. The loss in supply of sugar to PDS is offset by selling free quota sale at a higher price.

Asked about the 30,000 tonnes of sugar being exported to European Union and the United States under a special quota,Marathe said the obligations were being met without any failure.

Bhar said the 30,000 tonnes export was primarily an agreement of quotas.

Marathe said sugar units did not incur any loss in exporting the allocated quota to European Union and the US.

``We are exporting 10,000 tonnes of raw sugar and 10,000 tonnes of white sugar to the European Union. We also export 10,000 tonnes raw sugar to the US,'' He said.

Marathe said millers did not incur loss in exporting the 30,000 tonnes quota as they shipped in consumer packs of one kilo.

While welcoming the move to allow exports, sugar millers were also simultaneously pressing for further curbs on imports.

``We have sought a level-playing field as currently we have stock limitations, monthly free sale quotas and a levy (public distribution system) obligation,'' he said.

Recently, food minister Surjit Singh Barnala wrote to finance minister Yashwant Sinha demanding that customs duty on sugar be raised to 40 per cent.

Sugar exports were allowed in viewof a projected 150 lakh tonnes output this season and a stock of 108 lakh tonnes as on March 31.

Besides abundant stocks the country is also faced with problems of cheaper imports flooding the country.

To curb cheaper imports, customs duty on sugar was raised to 27.5 per cent since January this year from five per cent. Besides, the imports attract a countervailing duty of Rs 850 per tonne.

Domestic millers say the dual-pricing system, wherein sugar is sold at a lower price in ration shops and at a higher prices in open market, is preventing them from exporting the commodity.

Though a high-level committee has recommended ending of the control regime, government is yet to take a decision as state governments are opposed to such a move.