The cabinet also decided to allow exports of 25,000 tonnes of sugar in value-added form, information and broadcasting minister Pramod Mahajan told reporters.

Briefing reporters on the decision taken at the cabinet as well as the cabinet committee on prices (CCP), Mahajan said cabinet also decided to allow import of all oilseeds under open general license (OGL).

The CCP decided to ask state trading corporation (STC) to procure 10 million kg of flue-cured virgina tobacco from the states with assistance of the state government in the wake of increased production totalling 134.80 million kg against 98.83 million kg of authorised crop size.

Mahajan said oilseeds imports would be subject to plant quarantine. Till now, only imports of rapeseed, soyabean and sunflower had been allowed, he said.

On government'sdecision to allow wheat exports, he said India already had a surplus stock of six million tonnes of wheat. Wheat procurement by the food ministry this year was also higher at 14 million tonnes against nine million tonnes last year.

On sugar exports, the minister said it would be in addition to the 30,000 tonnes being allowed to the European Union and United States.