Indian sugar futures rise

Indian sugar futures rose on Wednesday afternoon as a lower output forecast for the 2008-09 crop year triggered some buying that outweighed concerns over the government's decision to impose stock limits. At 2:12 pm (0842 GMT), the March contract on the National Commodity and Derivatives Exchange was up 0.33 percent at 2,123 rupees ($42.5) per 100 kg.
The April contract rose 0.51 percent to 2,173 rupees. Spot prices in top producing state Maharashtra edged up 0.08 percent to 2,107.85 rupees. The International Sugar Organisation on Tuesday raised its 2008-09 (October-September) global sugar deficit forecast to 4.3 million tonnes from 3.6 million tonnes. The ISO put world production in 2008-09 at 161.5 million tonnes, down more than 4 percent from the prior season's 168.6 million, with consumption rising more than 2 percent to 165.8 million despite the global economic crisis.