An empowered group of ministers (EGoM) on food on Tuesday decided to allow sugar exports of up to five lakh tonnes as production this year is set to exceed the domestic demand, official sources said.Earlier, the food ministry had allowed and notified five lakh tonnes of export under Open General Licence (OGL).The decision was, however, kept on hold in view of high inflation and the matter was soon referred to the EGoM.The EGoM, headed by Finance Minister Pranab Mukherjee, met on Tuesday and decided to allow normal sugar exports not exceeding five lakh tonnes, sources added.India's sugar production is estimated at 24.5 million tonnes in 2011-12 sugar year (October-September) against 18.8 million tonnes in the previous year. The annual demand is pegged at 22 million tonnes.The government had earlier allowed mills to meet their export obligations of about one million tonnes under the Advance Licence Scheme (ALS).Agriculture Minister Sharad Pawar had earlier written to Finance Minister Pranab Mukherjee stating that sugar export should be allowed to prevent a situation of cane arrears to farmers.The EGoM also decided to allow state-owned trading firms to import five lakh tonnes of pulses for 2011-12 fiscal, but withdrew the 15 per cent subsidy to cover possible losses for offloading the imported pulses in the domestic market, sources said.India is a net importer of pulses as production is estimated at 16.5 million tonnes this year, while demand is 18-19 million tonnes. Besides, PSUs like STC and MMTC, private trade also import pulses to augment domestic supply.The Empowered Group of Ministers (EGoM) also extended the scheme under which the government provides Rs 10 per kg subsidy on imported pulses to be sold through ration shops for another six months till September.The EGoM also extended the stock-holding limit on sugar, edible oils and pulses till September, a step aimed at controlling inflation.On the proposed National Food Security Act, the EGoM deferred the decision to finalise the draft bill.The EGoM was to take a final view after vetting the recommendations of National Advisory Council (NAC) and the Rangarajan Comittee on the proposed bill.While Sonia Gandhi-headed NAC had suggested to give legal entitlement over subsidised foodgrains to both BPL and APL families under the proposed bill, the Rangarajan Committee had prescribed coverage to only poor considering the current foodgrains production and procurement level.