Indian sugar futures were steady for a second straight day on Friday as rising supplies from ongoing cane crushing and subdued demand was matched by hopes the government will allow more exports of the sweetener, dealers said. The key February sugar contract on the National Commodity and Derivatives Exchange were down 0.25 percent at 2,847 rupees ($56.38) per 100 kg by 0942 GMT.
"Demand from bulk consumers is weak. Due to winter season, cold drink makers are not buying," said Mukesh Kuvadia, secretary Bombay Sugar Merchants Association. "Other bulk buyers are also buying hand to mouth. They know this year supply will be ample." The sweetener eased 0.3 percent to 2,802 rupees per 100 kg in the Kolhapur spot market in top producing Maharashtra state.
Sugar mills are under pressure to generate cash as they need to pay farmers a large chunk of the cane price immediately after harvest or within two weeks. India's food minister K.V. Thomas said he will soon discuss with the finance minister lifting controls on sugar. The food minister also said on Tuesday he was open to allowing more sugar exports.
India allowed 1 million tonnes of sugar exports in the current season ending on September 2012. India has produced 10.45 million tonnes of sugar between October 1 and January 15, up 1.7 million tonnes from a year ago, due to a good recovery rate in Maharashtra, the Indian Sugar Mills Association, a producers' body, said on Tuesday. The country is estimated to produce 25 million tonnes in the 12 months starting October 1, 2011, higher than the annual demand of about 22 million tonnes.
Comments
Comments are closed for this article.