Indian mills gear up to make raw sugar for export as global prices rally

Strong demand for raw sugar as Brazil's output drops; traders so far sign contracts to export 725,000 tonnes of sugar

Indian mills are planning to make raw sugar at the beginning of the new marketing season starting Oct. 1 as a rally in global prices to 4-year highs boosts demand for so-called raws from overseas, six industry officials told Reuters.

Indian mills traditionally produce white sugar for local consumption and make small amounts of raw sugar for exports.

But potential supply tightness in world markets in the December quarter after drought and frosts hit the sugarcane crop in top exporter Brazil prompted Indian mills to plan production of raw sugar for overseas sale.

"We are planning to start the season with raw sugar