LONDON, Oct 2: Recent freight enquiries to move raw sugar from India to the Black Sea have turned the spotlight on prospects for the start of Indian sugar exports to Russia.

Presently Brazil is the main origin for sugar sales to Russia, the world’s top raw sugar importer.

But India’s huge looming exportable surplus is focusing the trade’s attention on the possibility of sales to Russia.

“(Merchant) Sucden has floated freight enquiries to move bulk sugar from India to the Black Sea, but I don’t know if any business was done,” a senior shipping broker said.

Other traders also referred to freight enquiries to move Indian bulk raw sugar to the Black Sea, but there was no confirmation of any business done.

India is likely to produce more than 30 million tons of sugar in the new season beginning in October, up from an estimated 28.3 million in the current year, trade officials say.

Prospects of Indian raw sugar sales to Russia are diluted by soaring freight rates and the likelihood that Russia will hike its raw sugar import duty from December.

Traders said that, because of the distances involved and the cost of freight, India was more likely to sell sugar to Bangladesh, Dubai or Egypt than the Black Sea.

Traders quoted freight costs to move bulk raw sugar from south Brazil to the Black Sea at $81 per ton this week, up from $76 per ton last week.—Reuters