NEW DELHI: India has approved around 30,000 tonnes of unrestricted sugar exports, kicking off overseas sales of a total 500,000 tonnes given an official green light on April 19, government sources said on Thursday.
"A total of 16 mills have been allowed, for about 30,000 tonnes," one of the sources, who requested anonymity, said.
The government had asked mills to register starting from April 19 for exports.
It asked mills to ship out the sweetener within four and half months.
One trader said he was looking for at least $675 per tonne free on board (FOB) basis west coast India for the sugar, while a source with one of the exporting mills said he expected $730-740 per tonne as the sugar was of high quality.
They are looking to sell to the Middle East, rather than Sri Lanka and Indonesia, these sources added.
London August white sugar futures were quoted around $622 per tonne on Thursday after prices eased on Wednesday, partly on hopes of exports from India.
India's food ministry has distributed the quota of 500,000 tonnes among mills on the basis of their three years' average output, or two years' average production in cases where a mill has not been in operation in one of three years.
If a mill is only a year old, the government will take into account last year's output. Any mill set up in 2010/11 will not be allowed to export.
Of the 500,000 tonnes, 51,500 tonnes have been set aside for sales to neighbouring countries.
India, the world's top consumer of sugar and the biggest producer behind Brazil, is expected to churn out 25 million tonnes in the year to September, according to the Indian Sugar Mills Association, against consumption of about 22-23 million tonnes, according to industry estimates.
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