NEW DELHI, April 24: Indian sugar producers are ready to sell 300,000 tons of sugar to Pakistan this year, but the deal will depend on trade negotiations between the two neighbours, a senior industry official said on Tuesday.

Pakistan’s 78 sugar mills are expected to produce up to 3.6 million tons in 2006/07, up from 2.6 million in 2005/06, local industry officials say.

Total domestic consumption is estimated at 3.9 million tons.

“We believe Pakistan will need at least 300,000 tons sugar and will buy the entire quantity from India,” Prakash Naiknavare, said managing-director of the Maharashtra Federation of Cooperative Sugar Federation.

“The order from Pakistan may come between July-August, but a lot will depend on trade negotiations between governments of the two countries.”

Sugar output in India, the world’s second-largest producer, is expected to jump to 26 million tons in the year to September 2007 from 19.3 million tons last year.

The Indian government lifted a ban on sugar exports in January, although mills are struggling with falling global prices.

“So far Indian mills have contracted 550,000 tons of exports and have despatched 375,000 tons of sugar,” Naiknavare said.

India mainly exports sugar to Sri Lanka, Bangladesh and Indonesia among others.

“This year we have tapped Yemen for exports and have sold some small quantity there,” Naiknavare said.—Reuters