These losses are expected to worsen in the current season as domestic prices have declined a further 16 per cent in the first four months of the current season and are currently at a 27-month low, CRISIL said. Despite significant inventory levels at the beginning of the 2013-14 season, CRISIL pointed out that mills were unable to export since the export realisations were Rs 2-2.5 per kg lower than domestic prices due to weak international prices. "With the export subsidy, nearly 1.5 MT of sugar is expected to be exported in the 2013-14 season. This, coupled with a 1.5 MT year-on-year fall in domestic production due to a likely decrease in cane output will result in a decline in inventory levels.