Indian sugar futures fell on Friday after the government raised a free-sale quota that millers can sell in the next three months. Sugar supplies in India are controlled by the government, which sets a monthly quota for traders. On Friday, the government announced the quota at 1.6 million tonnes for October and 1.3 million tonnes each for the following two months.
The total for the December quarter at 4.2 million tonnes is 2.4 percent higher than a year, and up from 3.6 million tonnes in the three months to September. Sentiment was also weighed down by an expected bumper crop, traders said. At 2:15 pm (0845 GMT), the October contract on the National Commodity and Derivatives Exchange was down 0.30 percent at 1,314 rupees ($33.1) per 100 kg.
The November contracts fell 0.24 percent to 1,261 rupees. The International Sugar Organisation has forecast India's sugar output will touch a record 33.15 million tonnes in the new season beginning October 1, up from 29 million tonnes in the year before. Domestic consumption is about 19.5 million tonnes.
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