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Indian sugar futures rose more than one percent on Wednesday, a day after the government extended by six months a non-cash incentive to help mills boost exports, analysts said. At 0940 GMT (3.10 pm local time), the July contract on the National Commodity and Derivatives Exchange (NCDEX) was up 1.65 percent at 1,355 rupees per 100 kg.
The August contract had risen 1.4 percent to 1,377 rupees. In India, sugar mills contribute 10 percent of their total output, known as the levy quota, to build government stocks for sale to the poor at cheaper prices. The government said in February that sugar meant for export would be exempt from the levy until July 2. On Tuesday it extended the incentive by six months to January 2008.

Copyright Reuters, 2007

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