Indian mills are likely to sell around 200,000 tonnes of sugar to Pakistan in the next few months after striking deals in August to export about 12,000 tonnes, trade officials said on Friday.
Sugar output in the year ended June 2007 was estimated at between 3.5 million to 3.6 million tonnes, against demand of around 3.8 million tonnes, said Prakash Naiknavare, managing director of the Maharashtra Federation of Co-operative Sugar Federation.
"The shortfall in Pakistan will be bridged with exports from India, which has excess sugar," he told Reuters, adding rising prices in Pakistan had helped overcome an earlier reluctance to buy sugar from India.
"The country is likely to import more in the next few months to keep a check on prices. Festivals are round the corner there, and prices may rise further during the festivals if there is shortage," he said.
Shanti Lal Jain, director general of the Indian Sugar Mills Association said he had heard two mills had contracted to sell 6,000 tonnes of sugar each to Pakistan. "Mills will strike more deals, but for small quantities," he said.
India, the world's second-largest sugar producer, is sitting on a huge surplus, with sugar production estimated at a record 28.5 million tonnes in the year to September 2007, up from 19.3 million tonnes last season.
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