Indian sugar futures rose on Wednesday on expectations of tighter supply of white sugar due to a late start to crushing in one region and as millers looked to sell raws for export, analysts said. Expectations that the government may extend freight subsidies by a year to April 2009 also supported futures, said Veeresh Hiremath, analyst at Karvy Comtrade.
The aid package currently runs until April. At 3:44 pm (1014 GMT) the January contract on the National Commodity and Derivatives Exchange was up 0.38 at 1,337.00 rupees ($33.93) per 100 kg. February contract was up 0.89 percent at 1,357.00 rupees. India, which usually exports white sugar, started selling raws this sugar year (October-September) to meet demand overseas.
Mills in the western state of Maharashtra have produced more than half of the raw sugar this crop year to December 20, on total sugar output of 1.74 million tonnes, said Balasaheb Patil, president of Maharashtra Cooperative Sugar Factories Federation.
Indian mills are exporting raw sugar to Dubai's Al Khaleej Sugar Co, which has contracted to buy more than 1 million tonnes. Cane crushing in the key Production State of Uttar Pradesh started a month behind schedule and this has also led to lower availability of white sugar, said Amol Tilak, analyst at Kotak Commodity Services Ltd.
Comments
Comments are closed.