SOFTS-Cocoa rises, sugar trade digests India report

* European trade sceptical India to remove duty

* Vietnamese producer selliung of robusta coffee

LONDON, March 12 - Cocoa futures rose on chart-based investor buying on Thursday while the white sugar market moved sideways, digesting a report that Indian authorities are seeking approval to import a large tonnage soon.

Robusta futures were mostly down on Vietnamese origin selling into industry buying, dealers said.

In cocoa, dealers talked of a continuation of investor buying from Wednesday.

London May cocoa futures were up 10 pounds to 1,862 pounds per tonne in reasonable volume of 3,867 lots at 1308 GMT, while U.S. May futures were up $18 at $2,352 per tonne.

The London white sugar futures market ignored a report quoting trade and industry sources as saying that the Indian government was keen to import 2 million tonnes of duty-free white sugar in the next six months and has sought the Election Commission's approval to go ahead.

David Sadler, a senior sugar trader with UK broker Sucden, said he was doubtful that India would remove the white sugar import duty before the poll.

"This (lifting the duty) according to some of our contacts who are well connected and versed in India, is highly unlikely," he wrote in a daily sugar market report.

"It is doubtful that the government will make any moves in that direction prior to the upcoming election. It is also thought that at the current differentials, the import of whites is not cost effective."

Other European traders and analysts voiced doubts that India would open the doors to white sugar imports before the April-May general election.

Such a move could be construed as being aimed at winning votes by dousing inflation, as a surge in Indian sugar imports could depress domestic prices of the staple commodity.

London May white sugar futures were flat at $396.00 per tonne in moderate volume of 1,898 lots at 1309 GMT, while ICE May raw sugar was down 0.03 cents at 12.78 cents per lb, with key nearby support seen at 12.50 cents.

In coffee, traders talked of Vietnamese producer selling into trade buying, pushing values lower in modest volumes.

One robusta dealer said he felt that the physical demand outlook for coffee was steady despite the global economic downturn.

"If there's anything at risk, it's not the production quantity - it's the quality," he said.

London May robusta coffee futures were down $5 at $1,434 per tonne in moderate volume of 3,554 lots at 1310 GMT, while ICE May arabicas were down 2.25 cents at $1.0480 per lb.