Mumbai, April 2 - Sugar exports from India, the world's second-biggest producer after Brazil, is likely to exceed 4 million tonnes in the crop year to September, one of the world's leading trader said on Wednesday.
"There is significant demand from South Africa, Egypt, Bangladesh and Indonesia. There is no dearth of demand for India's raw sugar," Adam Leetham, director of Czarnikow Sugar India Pvt Ltd, told Reuters.
"I believe India has all the reasons to export more than 4 million tonnes sugar this year."
Indian trade officials have estimated the country's exports in the current year at around 3 million tonnes, compared with 1.7 million tonnes in the previous year.
The government had banned sugar exports in July 2006 to rein in spiralling prices, and lifted the restriction in January last year but record output added to woes of the mills.
India began exporting raw sugar in July 2007, by striking a deal to sell 500,000 tonnes to Dubai's Al Khaleej refinery.
"Out of 2.1 million tonnes of sugar exports this year, raw sugar accounts for a healthy 65 percent," Leetham said.
Even if there is a downturn in India's production cycle the country will remain an exporter as it has massive stocks, he said.
Trade officials say India will produce around 23 million tonnes of sugar next year, down from an estimated 26.7-26.8 million this year.
The country produced a record 28.4 million tonnes last year, prompting mills to scout global markets for raw sugar exports.
"Dubai and Bangladesh will be the mainstay for India's raw sugar exports and it will not have to look too far to export raws," Leetham said.