India has exported 150,000 tn of sugar to Iran from Kandla Port in the ongoing season so far, two industry officials said today.

A total of 500,000 tn sugar has reached Kandla port in Gujarat so far, of which 50,000 tn has also been shipped to Bangladesh.

"Since the start of the season, Iran has been coming forward and buying sugar from India at higher prices because they can't buy from any other country due to the US sanctions," one of the officials said on the sidelines of All India Sugar Trade Association Sugar Conclave 2020 held here.

Last year, the US had imposed sanctions on Iran, following which Iran had agreed to sell oil to India in rupee terms and it uses the Indian currency to buy sugar and other Indian goods.

Deals were signed for export of raw sugar and low quality whites at 24-26 rupees per kg, free on board.

"…Iran is offering a premium of 3-5 rupees a kg than other countries," an exporter said.

However, Iranian traders are currently offering 22-23 rupees per kg for Indian sugar due to ongoing tensions between the West Asian country and the US, another official said.

Exports are very crucial for India this year as the country is holding carryover stocks of 14.6 mln tn, and the Centre is providing 10.50 rupees on each kilogram of sugar when exported to help mills make timely payment to cane farmers and reduce the glut in the market.

Industry experts believe the country may end up exporting 4.5-5.0 mln tn sugar in 2019-20 (Oct-Sep), lower than the Centre-fixed target of 6 mln tn sugar for this season.