"Stability in the export policy of such products is pivotal to sound export strategy," said the Federation of Indian Export Organizations (FIEO), adding that sudden changes in the policy front hurt interests of exporters.

"Exporters invest time and energy to explore market for their products and obtain export order in close competition.  However, sudden imposition of ban on export of the specified items have adverse impact like loss of established market and buyers, surrendering market to competitors, loosing image of reliable supplier and country, possibility of disputes between buyer and exporters and loss in earning foreign exchange, default in payment of loans to Banks, etc.," said FIEO President Rafeeque Ahmed in a press statement.

He suggested that warning may be issued well in advance regarding any restriction on price and quantity to avoid any such situation.

Reacting to the Government's move to remove the cap on sugar exports and placing the product under the Open General license category, Ahmed said that such steps will definitely help to reduce the trade gap.   

"At the same time, this will also enable exporters to send shipments of sugar, which was otherwise perishing in the go-downs and  help sugar mills to clear the dues of farmers running in thousands of crores of rupees, added  the  FIEO Chief and complimented the Government for this step," he added.

He viewed that India has vast potential of agricultural exports – a means to economic growth and national development. "Agricultural exports will not only be a source of earning of foreign exchange but the stimulation of greater economic activity," said the FIEO chief.