India's sugar exports are expected to cross 1.5 million tonnes in the sugar season that began in October 2002, Food Minister Sharad Yadav said on Wednesday.

The country shipped 1.08 million tonnes of sugar in the 2001-02 (October-September) crop year, mainly to countries in Southeast Asia, neighbouring Bangladesh and Sri Lanka.

"We will export 1.5 million tonnes of sugar this year. This figure can go up but will not come down," Yadav told reporters. Trade officials estimate exports in 2002-03 to be around two million tonnes due to growing demand from Indonesia and new markets in former Soviet Union countries and Iraq.

India, the world's second-largest sugar producer, has been aggressively selling sugar in the global market, helped by freight subsidies and pressure to cut its huge stocks.

Yadav said domestic sugar production in 2002-03 was forecast at 18.3 million tonnes, compared with 18.5 million tonnes in the previous season.

The country is likely to end the season with stocks of more than 7.8 million tonnes, down from 10.2 million tonnes on October 31 last year, Yadav said.