India sugar rises to over 1-week high on hopes of govt aid
Category: Sugar
(Reuters) – Indian sugar futures rose on Thursday to their highest level in more than a week on hopes the government would help mills to export raw sugar, though forecast of surplus production for the fourth straight year capped the upside.
The federal cabinet approved a scheme of interest-free loans to sugar mills, Food Minister K.V. Thomas said last week, as part of a bail-out package for beleaguered mills.
“After giving interest-free loans, the government will now consider providing some help to boost exports. Only exports can trim inventory and harden local prices,” said a sugar miller based in Kolhapur, Maharashtra.
At 0932 GMT, the key January contract was up 0.50 percent at 2,808 rupees ($45.35) per 100 kg on the National Commodity and Derivatives Exchange. It hit a high of 2,825 rupees earlier in the day, the highest level since Dec. 17.
Spot sugar rose 2 rupees to 2,870 rupees per 100 kg at the Kolhapur market in Maharashtra.
Demand for sugar from bulk consumers like ice-cream and cold drink makers usually drops during the winter.
India started the new sugar marketing year on Oct. 1 with carry-forward stocks of 8.8 million tonnes. It is expected to produce 25 million tonnes this year against a demand of 23 million tonnes.
