MUMBAI, March 24: Indian sugar futures rose on Monday, bolstered by strong demand in the physical market from makers of beverages and ice-creams and rising exports.
Traders said sentiment was also helped after the government kept the floor cane price unchanged for the new season that begins in October.
At 4:30 p.m. (1100 GMT), the April contract on the National Commodity and Derivatives Exchange was up 0.8 per cent at 1,514 rupees ($37.6) per 100 kg, while the May contract rose 1.15 per cent to 1,579 rupees.
Prices in the spot market in the western state of Maharashtra, the largest producer, rose 1.5 per cent to 1,511.65 rupees per 100 kg.
Ashish Shah, an analyst at Sushil Finance Consultants Ltd, said traders were upbeat about the long-term outlook because of rising export demand.
Last week, the federal government kept the minimum price for sugarcane unchanged at 81.18 rupees per 100 kg for 2008/09 season.
The announcement removes uncertainties and will help millers plan ahead, said Lopa Sanghvi, an analyst in Anand Rathi Commodities Ltd.—Reuters
