Indian sugar futures dropped on Wednesday afternoon as millers began selling on worries monsoon rains would affect the quality of their stockpile. At 3:18 pm (0948 GMT), the June contract on the National Commodity and Derivatives Exchange was down 1.33 percent at 1,409 rupees ($32.8) per 100 kg, while the July contract fell 0.21 percent to 1,452.
India's four-month annual monsoon has covered nearly all parts of the country. Millers are hurrying to clear off their allotted sale quota, fearing the damp weather will spoil the quality, brokerage Karvy Comtrade Ltd said. The government, which controls the trade by setting a quota that each mill can offer in the open market, has allowed millers to sell 1.35 million tonnes in June.
Traders said they expected the drop in prices to be temporary because farmers in the key producting state of Maharashtra in western India were expected to switch to other crops liked soybean because of better prices. The August futures was up 0.33 percent at 1,498 rupees, helped also in part by stronger world prices. White sugar August futures in London rose 1.74 percent to $380 per tonne by 0949 GMT.
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