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By Biman Mukherji

NEW DELHI, Nov 24 (Reuters) - Indian air freight agents anticipate a surge of export orders in the last two weeks of December, fuelled by the need to avert anxiety over the Year 2000 (Y2K) computer bug and to meet millennium shopping demand.

``Exports (year-on-year) will definitely go up by at least 10 to 12 percent, particularly between December 15 and 30,'' P.M.U Menon, president of the Air Cargo Agents Association of India.

Industry officials said fears over the millennium bug, expiry of trade quotas and demand for new products for Year 2000 celebrations would drive exports higher.

The Y2K bug threatens to cripple computers that use only the last two digits to denote a year in their date fields as the year switches over, prompting them to misread it as 1900. There have also been fears the bug could cause aircraft glitches.

``There is also just this fear about what will happen with the Y2K bug, although all the airlines are saying they are compliant,'' said Menon.

Export demand is usually high during the year-end festival season spanning Christmas and New Year, which is likely to be even higher for the century rollover event.

Traditionally, trade quotas for various items also finish around the year-end period, fuelling the rush yet further.

For instance, quotas for garment exports to the United States are expected to expire around the end of the year, said Cyrus Katgara, a leading freight forwarder.

Air freight industry officials said exports have already started showing faint signs of acceleration.

``Demand for products like millennium T-shirts, gifts and leather has already started because of which the export demand during the year-end period is likely to be at least 20 percent higher,'' said Katgara.

Most of the demand comes from the United States and Europe, India's two main air freight export markets.

Rakesh Mallik, vice-president of the air cargo agents' association, added that the pick-up in air freight would also be fuelled by a possible strengthening in India's economic fundamentals.

-- Steve (hartsman@ticon.net), November 25, 1999