India Birla sugar cos to buy 50,000 T raws

India's diversified Birla group will import 50,000 tonnes of raw sugar which will be processed in the next season that begins in October, company officials said on Friday.

"These imports are meant for next season," said an official at one the group's sugar companies who did not want to be identified.

India exported 5 million tonnes of sugar in 2007/08 but a sharp fall in domestic output has forced it to contract imports of about 2 million tonnes of raws this year, and the country is likely to have a deficit next year also.

The official said the company was considering importing when prices fell to $320 rupees per tonne. Industry officials say the landed price of imported raw sugar from Brazil was about $325.

The group, one of the country's top conglomerates, became the first Indian firm to import raws this year when it bought 25,000 tonnes of raws in March at $280 per tonne.

Another official said imported sugar would be used by the group's two sugar mills, Upper Ganges Sugar & Industries Ltd (UGSI.BO: Quote, Profile, Research) and Oudh Sugar Mills Ltd

source: reuters