Asia Sugar-Thailand to cash in on India's fading exports

By Mayank Bhardwaj

NEW DELHI, Sept 19 (Reuters) - India's expected drop in sugar output and exports should bring cheer to traders in Thailand who stand to clinch bigger deals with Asian buyers such as Japan.

India, the world's biggest producer after Brazil, is expected to see sugar production fall 24 percent to 20 million tonnes in the sugar cane crushing season that begins next month, trade officials say.

Exports from India, also the biggest user of the sweetener, will plummet 78 percent to 1 million tonnes in the new season, they say, creating more room for Thai traders in the market.

"I have the impression that Thailand will definitely try to plug the gap," said Vinay Kumar, director general of the National Federation of Cooperative Sugar Factories.

Traders in Bangkok said buyers in the Middle East were likely to step up purchases of Thai refined sugar and the country had already contracted large export orders for the 2008/09 season that begins in November.

"It is a big amount," a trader, who did not wish to be identified, said about Thai contracted exports for 2008/09.

The cane crushing season in Thailand runs from November to April.

Thailand's buoyant sugar cane output, expected at up to 75 million tonnes in the new season, would help boost exports, traders said.