Indian soyaoil futures fell marginally on Monday, ignoring gains in overseas markets, while sugar slipped due to a delay in a government package to help mills hit by falling prices. At 0937 GMT, June soyaoil futures on the National Commodity and Derivatives Exchange (NCDEX) were down 0.25 rupees at 484 rupees per 10 kg.
July futures had fallen 1.55 rupees to 487.75. "Buoyant sentiments in Malaysia failed to prop up domestic soyaoil, which has slipped after a marginal gain in early trade," an analyst with a Mumbai-based brokerage said. "With millers not facing any shortage because of a steady supply of soyabeans, future prices have fallen.
"The domestic market has completely shrugged off a rise in overseas futures." Malaysian markets firmed up after rival Indonesia on Friday raised the tax for crude palm oil to 6.5 percent. India buys palm oil from Malaysia and Indonesia and soyaoil from Brazil and Argentina.
Soyaoil prices generally track Malaysian trade as both the oils compete for the same market. The analyst said sugar was down due to a delay in implementing a government relief package for mills.
June sugar futures on the NCDEX were down 6 rupees at 1,223 per 100 kg, while July futures fell 5 rupees to 1,282. Farm Minister Sharad Pawar earlier this month said the government would soon announce a slew of measures to help mills hit hard by falling prices due to bumper output.
The minister said India's sugar output had already touched 27 million tonnes this crop year, and an additional 800,000 to one million tonnes would be produced before September. India, which consumes 19-20 million tonnes sugar annually, produced 19.3 million tonnes last year.
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