Indian sugar futures firmed on Tuesday on news the government was allowing exports of sugar that were in transit, while wheat futures were mixed on an increase in supply. Soy oil nudged higher after the government raised base prices used for calculating import duties on edible oils and on prospects for higher festival demand.
By 0910 GMT, the August sugar contract at the National Commodity and Derivatives Exchange had risen 3 rupees to 1,949 rupees per 100 kg. The same month contract on the Multi Commodity Exchange was up 5 rupees at 1,947.
"The government decision to allow exports of sugar stocks which were taken out of mills before June 22 has firmed up sentiment," said an official with a Mumbai-based brokerage.
The official said a comment in parliament by Farm Minister Sharad Pawar the government would review a ban on exports in the new sugar season in October also had an impact on the market.
Wheat futures were mixed on a slight rise in supplies from trading firms, which built stocks over the last few months in anticipation of higher prices, and arrival of one shipment of imported wheat in a southern Indian port.
The August wheat contract at the NCDEX was down 3.20 rupees at 859.80 per 100 kg. The same month contract on the MCX rose 1.80 rupees to 891. Soy oil firmed on higher base prices fixed by the government on Monday on imports of palm and soy oils.
The August soy oil contract at the National Commodities and Derivatives Exchange (NCDEX) was up 0.90 rupees to 433.20 per 10 kg, while the same month contract at the Multi Commodity Exchange was up 0.65 rupees at 430.20. "Soy oil prices should firm up further in the coming weeks with demand for upcoming festivals," an oil broker said.
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