Sugar mill owners have applied for permission to export one million tons of sugar and have provided the Ministry of Production with data showing abundant sugar stocks in the country, sources said on Sunday.

The export of sugar could generate more than $1 billion in foreign exchange earnings, sources said.

Sources said sugar mills could face financial losses if exports are not allowed.

The government has sought guarantees from sugar mill owners that domestic sugar prices will not increase if exports are approved, according to sources.

The Ministry sources said the government would not permit sugar exports without such guarantees.

Last year, sugar prices rose from 120 rupees to 200 rupees per kilogram following sugar exports, sources added.