India may export 60,000 tons of raw sugar to Iran for March-April delivery, Reuters reported. It would be India´s first sales of the sweetener to Tehran since western sanctions were tightened at the start of 2012.
The exports are within the ceiling of two million tons of sales already allowed by New Delhi under the open general license (OGL) scheme.
According to the International Sugar Organization (ISO) Iran is expected to import 1.6 million tons of sugar in the 2011/12 year, around 31% of the estimated global surplus of 5.17 million tons.
The Islamic nation bought 1.8 million tons of the sweetener in 2010, the ISO said.
Sugar output in India is expected to be over 25 million tons this, while demand is estimated at around 22 million tons for the year. Because of the surplus, the government is considering allowing exports of another 0.5-1 million tons of sugar, after permitting two million tons so far in the 2011/12 season.