The state agency, which has until now imported sugar to build up reserves, issued the tender last month in which the sugar from locally produced cane will be exported to European Union countries under a preferential quota for the least-developed countries.

Deshbandhu Sugar Mills Limited offered the highest price while another bidder in the tender was London-based E D & F Man Sugar Ltd, which offered $597.50 a tonne.

The offer from Deshbandhu has been sent to the cabinet purchase committee for approval, the official said.