MUMBAI, March 31 (Reuters) - Indian sugar futures opened higher on Tuesday as the Cabinet did not discuss the issue of allowing duty-free white sugar imports on Monday and on hopes summer demand may pick up in coming weeks, analysts said.
Traders were speculating the government would allow private traders to import white sugar at zero duty along with the state-run agencies, in Monday's cabinet meet.
India imposes a 60 percent tax on the white sugar imports.
However, Home Minister Palaniappan Chidambaram told reporters on Monday the Cabinet did not discuss the issue. See [nS30433619]
Farm Minister Sharad Pawar had told Reuters last week that duty-free imports of white sugar may not be required as domestic prices had fallen.
At 10:07 a.m., the April contract NSMJ9 on the National Commodity and Derivatives Exchange was up 0.34 percent at 2,094 rupees per 100 kg.
However, futures may pare gains later on hopes government may increase quota for the April-June quarter to check prices in election months of April and May, they added.
The government may allocate 4.5 million to 5 million tonnes for the June quarter, compared with 4.4 million tonnes allocated in the same period last year, traders said.
India's government sets monthly and quarterly quotas that millers can sell freely in the market and the announcement usually comes at the end of each month or quarter.
Source : REUTERS INDIA