Indian sugar futures climbed more than 1 percent on Friday, on expectations the government would help mills in the coming weeks to reschedule their debt, analysts said. Activity was hectic in the August contract than in the immediate month, as the short-term outlook was seen upbeat, they said.
At 3:45 pm (1015 GMT), the July contract on the National Commodity and Derivatives Exchange (NCDEX) was up 1.04 percent at 1,362 rupees ($33.37) per 100 kg. The August contract firmed 1.38 percent to 1,392 rupees. "The July futures will face strong resistance at 1,380 rupees while the August contract will face resistance at 1,397 rupees," an analyst at Indiabulls Commodities Pvt Ltd said.
The market is expecting fresh incentives from the government in the form of rescheduling of debt, an analyst at a Mumbai-based brokerage said. "In addition, the new sugar policy from the Uttar Pradesh government is expected in July," he said. The northern state of Uttar Pradesh is a leading sugar producing region. A newly formed government there had scrapped the sugar promotion policy of the previous government.
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