NEW DELHI, Dec 26 (Reuters): India is likely to export about 50,000 tonnes of sugar to Pakistan by the end of January, a top trade official said today. "Our relationship with Pakistan has improved a lot politically and business-wise," SL Jain, director-general of the Indian Sugar Mills Association, said. "I think India will be able to export up to 50,000 tonnes to Pakistan by end-January," he said in an interview. Two Indian firms recently sold about 4,700 tonnes of sugar to Pakistan in separate deals. Pakistan has said it would import at least 800,000 tonnes of sugar next year to fill a growing supply-demand gap after sugar mills in the south of that country stopped production over a price dispute with farmers. Jain said domestic sugar mills were looking forward to exports to Pakistan as freight costs were much lower and stocks could easily be moved by rail. Indian mills, which can import raw sugar duty-free under the government's advance licence scheme, have an obligation to export a similar quantity of refined sugar. Indian mills have bought around 2.65 million tonnes of raw sugar under the scheme during the last two years to offset a shortfall in supplies. Jain said Indian mills were likely to export around 2.3 million tonnes of refined sugar in 2006 and 2007. "A small quantity of the export obligation has already been fulfilled ... may be about 50,000 tonnes," he said.
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