India sugar remains weak as surplus output hurts
Category: Sugar
(Reuters) – Indian sugar futures eased in thin volume trade on Tuesday on sluggish demand from bulk consumers amid buildup in inventory due to surplus production in three straight years.
* India’s carry-forward stocks of sugar on Oct. 1 are estimated at 8 million tonnes, up from 6.2 million tonnes a year earlier.
* The key November contract was down 0.14 percent at 2,891 rupees ($46.75) per 100 kg on the National Commodity and Derivatives Exchange at 0935 GMT. The contract fell to 2,887 rupees on Sept. 28, the lowest in more than 15 months.
* “Ample supplies have depressed prices. Unless we see a meaningful demand from bulk consumers, prices will remain at around current levels,” said Prasoon Mathur, a senior analyst with brokerage Religare Commodities.
* Spot sugar eased 4 rupees to 2,933 rupees per 100 kg at the Kolhapur market in top producing Maharashtra state.
* India will celebrate the Hindu festivals of Dussehra in the third week of October and Diwali in the first week of November, when demand for the sweetener usually rises.
* India’s sugar output is expected to be 25 million tonnes in the new season that started on Oct. 1, higher than the estimated demand of 23 million tonnes per annum, a leading industry body said.
* India could export as much as 3 million tonnes of sugar in 2013/14 to get rid of excess supply, capitalising on rising demand from Southeast Asia, the Middle East and Africa. ($1 = 61.8450 Indian rupees)
