A crucial meeting convened by Prime Minister Manmohan Singh to discuss the policy on the export of farm commodities including wheat and to review the food grains storage position was postponed as there was apprehension that the Opposition may seek division of votes on the demand for grants for Urban Development Ministry which was being discussed in the Lok Sabha at the time.

However, even as the United Progressive Alliance Ministers were rushing to the Lok Sabha word came that there was to be no voting. But by then the Prime Minister's meeting was deferred.

“The meeting has been postponed to Wednesday,” Union Food Minister K.V. Thomas told journalists here.

Among other food and farm issues, the meeting was called to discuss the policy on sugar, cotton and milk exports after Agriculture Minister Sharad had earlier shot off a letter to the Prime Minister, stating that the government's export policies were hurting farmers, who were being asked to subsidise the industry.

Those invited to the meeting included Finance Minister Pranab Mukherjee, Mr. Pawar, Commerce and Textiles Minister Anand Sharma, Minister of State for Food K.V. Thomas and Deputy Chairman of Planning Commission Montek Singh Ahluwalia, besides senior officials.

In a way, the urgency for taking a decision on cotton exports was taken care of in an earlier “informal” meeting of the Empowered Group of Ministers. The EGoM decided to lift restrictions on cotton exports as the production of cotton had improved. The meeting was held between Mr. Mukheerjee, Mr. Pawar and Mr. Sharma.

“A decision has been taken to remove the suspension of cotton exports registration. Registration of cotton exports will be allowed by the government,” Mr. Sharma said after the meeting.

Last month, the government had lifted the ban on exports but decided not to issue fresh registration of certificates (RCs). It only allowed shipments for which RCs were already issued before the ban was imposed on March.

Besides taking a view on the policy on sugar exports and allowing export of milk, the Prime Minister's meeting was to have taken a decision on steps to deplete some of the burgeoning wheat stocks.

With food stocks touching 74.9 million tonnes on June 1, the Food Ministry has proposed raising the allocation for both the Below Poverty Line and the Above Poverty Line populations under the Targeted Public Distribution System (TPDS).

It has also suggested that some quantities be exported as there is demand from the Gulf countries. Certain quantities can also be put under the Open Market Sale Scheme.

But the bone of contention between the Ministry of Food and Agriculture is over the export of sugar. Suggesting a change to the earlier policy of giving release orders to mills on a pro-rata basis depending upon last three years' production, Mr. Pawar said the policy should be changed to allow sugar exports on a first-come-first-serve basis under the Open General Licence.

Of the 35 lakh tonnes of sugar allowed for exports since 2010-11, about 27 lakh tonnes has been exported so far. The decision for export of the last tranche of 10 lakh tonnes has, however, not yet been notified.