29th Nov 2013: India sugar drops on supply surplus; eyes govt moves Nov 28 (Reuters) - Indian sugar futures fell on Thursday on ample supplies due to surplus production in three straight years, though a delay in cane crushing and hopes the government would take steps to arrest falling prices limited the downside. * India started the new sugar marketing year with carry-forward stocks of 8.8 million tonnes. It is expected to produce 25 million tonnes this year against a demand of 23 million tonnes. * The key December contract was down 0.49 percent at 2,830 rupees ($45.46) per 100 kg on the National Commodity and Derivatives Exchange at 0719 GMT. It fell to 2,801 rupees last week, its lowest since June 8, 2012. * The general election is due next year. The government will certainly take few steps to boost sugar prices. It cant afford to ignore interests of sugarcane farmers, said a sugar miller based Kolhapur, Maharashtra. * Traders say the government can increase import duty or provide subsidy for exports to arrest falling sugar prices. * Spot sugar rose 6 rupees to 2,891 rupees per 100 kg at the Kolhapur market in Maharashtra. * Demand for sugar from bulk consumers like ice-cream and cold drink makers usually drops during winter. * Sugarcane crushing normally starts in the first week of November in Maharashtra and Uttar Pradesh, the countrys top two producing states. But this year it has been delayed as farmers and mills could not reach an agreement over the cane price. * A standoff between mills and farmers over the cane price in India will be resolved within a week to 10 days, the head of the countrys sugar industry body said on Wednesday. (Source: in.reuters)
Posted on: Fri, 29 Nov 2013 04:57:55 +0000
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