The Government has approved a further extension of the 25 percent tax on wheat imports, due to end on 30 June (FPMA Food Policies), without specifying a new expiry date. The measure aims to protect the domestic wheat market amid low international prices and high government-held wheat stocks. The Government has also imposed a 20 percent tax on sugar exports, in view of an expected reduction in output this year. India is the world’s second largest sugar producer and deteriorating production prospects contributed to underpin international prices of sugar in May. The measure aims to restrain exports in order to ensure domestic market supplies and prevent further gains in domestic prices, which have been steadily increasing in the past months and in May they were over 30 percent higher than their year-earlier levels.