New Delhi: Notwithstanding industry's optimism over sugar exports this season pegged at 20 lakh tonnes, trade has been affected by the second Gulf war, with two Iraq- bound cargoes carrying a total of 26,500 tonnes held up in West Asia.

"Our 13,550 tonne sugar cargo had offloaded 50 tonnes at Noirisis in Iraq when the war broke out and the authorities gave orders for the ship to leave the port premises immediately," managing director of Priyanka Overseas R K Jain said.

He said the cargo is now anchored in the seawaters somewhere between Bahrain and Dubai and the company has filed an application with India's permanent UN mission in New York for early acceptance of the consignment under the oil-for-food programme.

No more cargoes are leaving for Iraq, but trade continues with other countries in West Asia, director general of Indian Sugar Mills Association S L Jain, added.

He said another 13,000 tonne sugar sold to an Egyptian buyer but bound for Iraq is anchored near Jordan due to the war while two cargoes have already been delivered.

An Indian ship carrying 13,000 tonnes sugar was not allowed to unload its cargo in Baghdad by the US-led coalition, Iraqi Information Minister Mohammed Saeed Sayyaf said in Baghdad adding it was one of the three ships asked to return on March 30.

National Federation of Co-operative Sugar Factories managing director Vinay Kumar said West Asian buyers of Indian sugar had not asked for postponement of scheduled deliveries.

PTI