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India Spot Sugar Down on Higher Supply, Weak Demand |
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Indian spot sugar prices eased on Tuesday due to higher supplies amid weak demand, while futures rose owing to bargain-buying, said dealers and analysts.
"Supplies are more than demand. In February, demand is unlikely to rise sharply," said Ashwini Bansod, a senior analyst at MF Global Commodities India.
India has made available 1.62 million tonnes of non-levy sugar for February, including 300,000 tonnes unsold stocks of January, the government said in a statement on Jan. 31.
Non-levy, or free-sale sugar, is sold by millers in the open market, but the quantity each mill can sell is fixed by the federal government on a monthly basis.
"Exports under open general licence scheme are getting delayed. The delay will also weigh on prices," Bansod said.
A panel of Indian ministers will review 500,000 tonnes of sugar permitted for overseas sales, two government sources said last month.
In Kolhapur, a key market in top producing Maharashtra state, the most traded S-variety eased by 0.3 percent to 2,704 rupees ($59) per 100 kg, after losing 5 percent last month.
The most-traded M-grade sugar contract for February delivery NSMG1 on India's National Commodity and Derivatives Exchange (NCDEX) provisionally ended up 0.8 percent at 2,769 rupees per 100 kg.
The Indian Sugar Mills Association, a producers' body, had forecast 2010/11 output at 25.5 million tonnes, up from 18.8 million tonnes in the previous year. ($1=45.8 rupees)
Source : reuters.com
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