October 01, 2013
Indian sugar futures edged higher on Monday after hitting a 15-month low last week on hopes lower prices would spur demand during the festive season and lift exports. Sugar prices in India have been under pressure in the last few months due to surplus supplies and weak demand from bulk consumers.
At 0910 GMT, the key November contract was up 0.21 percent at 2,897 rupees ($46.28) per 100 kg on the National Commodity and Derivatives Exchange. The contract fell to 2,887 rupees last week, the lowest level since June 2012. “Prices have corrected sharply due to the supplies pressure. In the next few weeks, demand is set to rise due to festivals like Dussehra and Diwali. It can lead to a rebound in prices,” said Nalini Rao, an analyst at India Infoline Ltd.
Spot sugar was 4 rupees lower at 2,965 rupees per 100 kg at the Kolhapur market in the top producing Maharashtra state. India’s sugar output is expected to be 25 million tonnes in the season starting October, up from 23.7 million tonnes, as heavy monsoon rains have helped boost cane yields, a leading industry body said.
India’s carry-forward stocks of sugar on October 1 may jump to 8 million tonnes from 6.2 million a year earlier. In 2012/13, mills could export only a small amount of sugar due to lower global prices. India could export as much as 3 million tonnes of sugar in the season beginning October to get rid of excess supply, capitalising on rising demand from Southeast Asia, the Middle East and Africa. Courtesy Reuters
Published in ZaraiMedia.com