Indian sugar falls on subdued demand
Indian sugar futures fell on Tuesday due to subdued demand from bulk buyers amid ample supplies as the country is set to produce surplus sugar for a fourth straight year. At 1051 GMT, the key January contract on the National Commodity and Derivatives Exchange (NCDEX) was 0.68 percent down at 2,763 rupees per 100 kg. It fell to 2,755 rupees on December 10, the lowest since November 2, 2011.
Copyright Reuters, 2013
"Mills across India have started crushing operations but local demand is still weak. Selling pressure is high in the market as mills have large carry-forward stocks," said Mukesh Kuvadia, secretary of the Bombay Sugar Merchants Association.
Spot sugar fell 15.5 rupees to 2,867 rupees per 100 kg at the Kolhapur market in Maharashtra state. Sugar prices are expected to trade weak in the near term, Kuvadia said.