SOFTS-Sugar gains on Indian export doubts; cocoa up

* Indian ministers to review sugar exports - sources

 * Five killed in clashes in top cocoa producer Ivory Coast

 * Large discount prompts industry buying of robusta coffee

 (Adds quote, updates prices, news)

 By Anna Yukhananov and Nigel Hunt

 LONDON, Jan 11 (Reuters) - Raw sugar futures on ICE rose on
Tuesday with possible delays to exports from India heightening
concern about nearby supply tightness.

 A panel of Indian ministers will review 500,000 tonnes of
sugar permitted for export, government sources said, as mounting
pressure on the government to tackle high food price inflation
has led to worries shipments could be delayed. [ID:nSGE70A0BL]

 "There's still great uncertainty about what India will
commit to be exported," said VM Group analyst Gary Mead. "Until
this is openly resolved, I'd expect the market to drift up or
down quite frequently."

 Dealers said possible downward revisions to the crop outlook
in India were also contributing to doubts about the level of
exports from the world's second largest producer this season.

 "The market has uncertainty about what India will actually
export in the end. Everyone thinks they'll export the 500,000
(tonnes), but everyone is concerned what will happen after
that," one London dealer said.

 Dealers also cited recent news that Algeria is to suspend
customs duties and value added tax on imports of sugar as a
supportive factor. The move was taken in response to riots over
rising food prices. [ID:nLDE7070AO]

 "This should generate end-user buying and will probably be
aiding the (sugar) market," one London dealer said.

 March raws SBc1 rose 0.98 cent or 3.1 percent to 32.72
cents a lb by 1607 GMT.

 Prices on Liffe were also higher with March whites LSUc1
up $30.60 or 3.95 percent at $806.10 per tonne.

 INDUSTRY BUYING

 Cocoa prices on ICE were firmer. Dealers said the market was
building a base, supported by industry buying, following a
downward drift as the risk premium linked to political tensions
in top producer Ivory Coast eroded.

 "Dialogue seems to be taking place in the Ivory Coast, but
with the situation currently there, anything goes. So there's
still sensitivity in the market to what goes on there," one
London dealer said.

 At least five people were killed in clashes between
supporters of Ivory Coast presidential claimant Alassane
Ouattara and forces loyal to incumbent Laurent Gbagbo, a Reuters
witness reported on Tuesday. [ID:nLDE70A1DC]

 "In physical terms, we're seeing the full flow of cocoa
going through, and it hasn't been as inhibited as people
originally thought (because of Ivory Coast unrest)," the dealer
added.

 May cocoa on ICE CCc2 rose 1.5 percent or $42 to $2,947 a
tonne. May cocoa on Liffe LCCc2 climbed 1.0 percent to 1,967
pounds a tonne.

 Supply was also rising from world No. 2 grower Ghana, where
declared cocoa purchases were 52 percent higher by Dec. 30 since
the start of the season in October compared to the same period
last season, data obtained by Reuters showed. [ID:nLDE70A19M]

 Coffee futures were slightly higher, building on the prior
session's gains with concerns about the outlook for the 2011
crop in key producer Colombia helping to underpin the market.

 "It's a follow-on from yesterday's strength. Industry is
also taking some robusta cover because it's so heavily
discounted compared to arabica," one dealer said.

 May arabicas on ICE KCK1 rose 2.70 cents or 1.2 percent to
$2.3545 per lb while March robustas on Liffe LRCc2 climbed 1.2
percent to $2,090 a tonne.
 * Prices as of 1640 GMT
 Product             Last    Change   Pct Move End 2010 Ytd Pct
 ICE sugar           32.84     1.10    +3.47    32.12     2.24
 ICE coffee         236.15     3.40    +1.46   241.80    -2.34
 ICE cocoa         2959.00    54.00    +1.86  3052.00    -3.05
 Liffe sugar        809.30    33.80    +4.36   777.50     4.09
 Liffe coffee      2105.00    50.00    +2.43  2097.00     0.38
 Liffe cocoa       1971.00    23.00    +1.18  2029.00    -2.86
 CRB index          331.03     4.18    +1.28   332.80    -0.53
 Crude oil           90.91     1.66    +1.86    91.38    -0.51
 Euro/dlr             1.30     0.00    +0.22     1.34    -3.05
 * ICE sugar and ICE coffee in cents per lb, ICE cocoa, Liffe
sugar and Liffe coffee in dollars per tonne. Liffe cocoa in
pounds per tonne.

(Source: http://af.reuters.com/article/commoditiesNews/idAFLDE70A1EF20110111)