The cabinet committee on economic affairs (CCEA) on Tuesday deferred a decision to provide incentives for raw sugar exports up to four million tonne over the next two years.

‘‘We had preliminary discussions. There are some issues to be sorted out. We will take up this matter in the next meeting,’’ food minister KV Thomas said after a CCEA meeting. The CCEA is expected to meet again on Thursday.

The food ministry firmed up a proposal to offer R2,000 per tonne subsidy for raw sugar exports up to four million tonne over the next two years after an informal group of ministers, headed by agriculture minister Sharad Pawar, had last month asked it to finalise the quantum of the dole-out in consultations with the finance ministry.

The Indian Sugar Mills Association (ISMA) has said the subsidy amount should be at least R3,500 per tonne to make raw sugar exports viable in a global market already awash with supplies, industry executives said. The agriculture ministry is believed to be in favour of providing a subsidy of R3,500 per tonne.

If the CCEA agrees to provide subsidy of R3,500 per tonne, the burden will be to the tune of R1,400 crore over two years, compared with R800 crore, based on the food ministry’s current proposal.

The move is aimed at reducing white sugar production in the country to cut a glut and diversifying product base. The government’s move to subsidise raw sugar imports was part of a series of recommendations by the Pawar-led panel in December to bail out the cash-starved sugar industry and hasten the process of clearing cane arrears. Subsequently, the CCEA on December 26 approved modalities for extending interest-free loans worth R6,600 crore to sugar industry.