50,000 tn more sugar to be exported to Pak

India will export additional 50,000 tonne of sugar to Pakistan at $491 a tonne on cost-and-freight basis, an industry official said on Monday.

India had exported 1,00,000 tonne to the neighbouring country last month. The contract has been awarded to the Indian Sugar Exim Corporation Ltd (ISEC).

On behalf of a number of firms, the ISEC will export 50,000 tonne of additional sugar to Pakistan at $491, the official said.

State-owned Trading Corporation of Pakistan (TCP) had floated a 75,000-tonne sugar export contract.

Of the total 75,000 tonne of white sugar, 50,000 tonne will be imported from India while the rest 25,000 tonne will be from Singapore-based trading house Agrocorp International.

After the recent contract, the neighboring country has contracted deals to import 2,25,000 tonne of white sugar.

TCP is likely to float another 50,000 tonne import tender on April 22, which would make it the country's fifth sugar purchase since February, the official said.

A sharp rise in domestic sugar prices had prompted Pakistan to lift a four-year ban on imports from India due to severe supply crunch.

Pakistan is likely to produce only 2.5 million tonne sugar in the current October-September season against a demand for 3.8 million tonne.

India's output is pegged at 18.5 million tonne, up from 13 million tonne last year.

Indian mills need to export 2 million tonne white sugar in lieu of the equivalent amount of raw sugar imported in the last season in the wake of severe cane shortage due to drought.

Under the advance licence scheme, Indian manufacturers have to export white sugar in quantities equivalent to the raws imported within 24 months.

Meanwhile, the May sugar contract on the London International Financial Futures and Options Exchange had on Thursday closed at $466 per tonne, up $2.50 from the previous close.