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Traders to import more sugar ahead of Ramadan

REUTERS, New Delhi
Traders in Bangladesh have bought at least 50,000 additional tonnes of sugar of Thai and Indian origin and could be scouting for more to meet a surge in festival demand, traders said on Friday.
A leading trader said this month the country had already sealed deals to import more than 100,000 tonnes of sugar and was eyeing further sales.
"At this end, we have heard that 150,000-200,000 tonnes of sugar has been booked for Bangladesh for delivery in September and October," said a trader with an international trading house.
"How much is actually sold nobody knows."
Importers in Bangladesh were awaiting shipment of more than 100,000 tonnes of white sugar, scheduled to arrive ahead of the Muslim fasting month of Ramadan
in late October, traders said.
"Bangladesh has bought a lot of Thai sugar and Indian sugar is also going from both east and west coast," said an official at an exporting house.
He said Thai sugar was preferred as it was slightly cheaper than Indian sugar and its quality was superior.
"Bangladesh should have a requirement of about 250,000 tonnes but they need it in a small time-frame and have logistics problems," he said.
Sugar imports to Bangladesh normally rise at this time of year as Muslims prepare to observe Ramadan, a period when they consume a lot of sweets at night as they break their daytime fast.
Indian traders have sold some cargoes to private traders in Bangladesh after Dhaka waived restrictions at the end of August on opening letters of credit (LC) for
imports.
Balrampur Chini Mills Ltd, a Calcutta-based sugar producer, sold some cargoes in the past weeks to international trading houses at around $215 a tonne FOB, a company official said. The sugar was destined for Bangladesh.
"We have sold healthy quantities," a company official said but declined to disclose the amount." We have begun our shipments for delivery in September."
Bangladesh produces only about 200,000 tonnes of sugar against an annual requirement of about 500,000 tonnes.
Traders said Bangladesh traders were rushing into as many deals as possible due to market talk the government could again restrict opening of LCs.
India has a stockpile of 10 million tonnes of sugar while Thailand has just entered the new sugar season.