In an unusual move to push the decision to provide higher subsidy to mill owners for sugar export through the Cabinet, an informal group of ministers meeting has been convened on Friday - just hours before the CCEA is likely to take a final call on this issue.

The Cabinet Committee on Economic Affairs (CCEA) has deferred the decision thrice including twice this week. Sources said that the decision to call the meeting under agriculture minister Sharad Pawar was taken on Thursday evening.

Officials privy to the development said that while the food ministry wants that the subsidy should be Rs 2,000 per tonne for export of 40 lakh tonnes of raw sugar in two years, sugar mills want this to be increased to Rs 3,500 per tonne.

Sources said that a section in the government wants the food ministry to revise its proposal and price so that Cabinet can consider the fresh subsidy. But food ministry is finding it difficult to increase the amount, which will mean government shelling out over Rs 1,200 crore subsidy to the mill owners. A part of the subsidy will be paid from state-run Sugar Development Fund and the rest will be borne by the finance ministry, according to the proposal.

On Wednesday, Pawar had told a news agency that Rs 2,000 subsidy per tonne suggested by the food ministry is inadequate to boost exports as Indian raw sugar was about Rs 4,000 more expensive than global prices.

Even food minister K V Thomas had told agencies on Tuesday that the CCEA had deferred a decision on subsidy after Pawar demanded an increase in assistance to exporters.

What has surprised many is that there is unusual urgency to announce the subsidy amount at a time when international prices are going up. In this trend continues that the gap between Indian raw sugar and export prices will fall. In that case government won't have to pay less subsidy amount to make exports viable.