MUMBAI, May 11: Indian Sugar Exim Company Ltd has been allocated a special quota from the government that will allow the firm to export up to 150,000 tons of sugar to Pakistan, its chief executive said on Thursday.

“We were given this permission by the government on Wednesday to export only to the Trading Corporation of Pakistan,” S.L. Jain, chief executive of ISEC, told Reuters.

He said the quota was in addition to the sale of 200,000 tons of sugar already committed to the TCP.

Mr Jain said there was no time limit on the export quota and it had been allocated on the basis that the company had already exported sugar to Pakistan.

The Indian government only allows exports by mills that imported raw sugar duty-free in the last two years. Under this arrangement, sugar firms can export two million tons over a period of two years until 2007.

However, the quota allocated to ISEC will enable the firm to export up to 150,000 tons without this limitation.

Mr Jain said ISEC was hoping to use this quota to bid for a tender being floated in two days’ time by the TCP for 50,000 tons of sugar.

“This new quota has strengthened our hands and we will participate,” he added.

Pakistan’s sugar output is expected to decline to between 2.8 million and 3.0 million tons in the production year that began in November, from 3.2 million in the previous year.—Reuters