Indian sugar futures may extend losses from the previous session on Thursday on a likely rise in supplies after government allowed duty-free imports of raw sugar for the domestic use, analysts said.
The benchmark March sugar NSMH9 on the National Commodity and Derivatives Exchange ended at 2,093 rupees per 100 kg, down 2.79 percent in the previous session.
Two Indian refineries had contracted to import a total of about 800,000 tonnnes of raw sugar in recent months, and that sizeable quantities had already been received, S.L. Jain, director-general of the Indian Sugar Mills Association said on Wednesday. See [ID:nL420236]
India on Tuesday allowed duty-free imports of raw sugar for local sale on the condition that a similar quantity of refined sugar is exported within two years.
It replaces an earlier policy under which the importer was obliged to refine the imported consignment and export it.
However, losses may be capped by a likely drop in sugar output government and trade estimates suggest will be about 18 million tonnes in 2008/09, from 26.3 million tonnes a year ago.
Source : REUTERS INDIA