Indian sugar futures were mixed on Tuesday due to a delay in announcing details of a scheme to subsidise exports and record output forecasts. Soyoil fell due to a downward technical correction after a period when markets were bullish.
India is expected to produce a record 25-26 million tonnes of sugar in the season that ends in September, sharply above last year's output of 19.3 million tonnes, and annual domestic consumption of around 18 million tonnes.
To help sugar firms boost overseas sales, the government has forwarded an export incentives plan to election officials, who must decide if it breaks election laws with polls underway in Uttar Pradesh state, a major sugar producing region.
At 0836 GMT, April sugar futures on the National Commodity and Derivatives Exchange were up 2 rupees at 1,409 rupees per 100 kg, while the May futures had fallen 1 rupee to 1,422.
"Estimates of a record production this year and no development on the export subsidies are the reasons for weak fundamentals," an analyst with a Mumbai-based brokerage said. "Soy is down after trading up in the last 5-10 days and the futures may go up in the near-term on lower estimates of oilseed production," the analyst said.
The April soyoil futures on the Multi Commodity Exchange were down 1.40 rupees at 472, and May futures had fallen marginally by 0.70 rupees to 477.15. Earlier this month, the Farm Ministry estimated oilseeds output at 23.26 million tonnes from 27.98 million tonnes in 2006.
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