MUMBAI: Indian sugar futures fell on Monday on sluggish demand due to winter season and on rising supplies due to ongoing cane crushing.
As of 0927 GMT, the January sugar contract on India’s National Commodity and Derivatives Exchange was down 0.18 per cent at 3,263 rupees ($59.21)per 100 kg.
“Crushing is progressing well in Maharashtra and Uttar Pradesh. Inventory with mills is rising every day,” said Mukesh Kuvadia, secretary, Bombay Sugar Merchants Association.
“Demand is weak. Bulk consumers, retail buyers are cutting purchases due to winter season.”
Demand for sugar from bulk consumers like cool drink and ice cream makers usually drops in India during the winter season.
Sugar fell by 16 rupees to 3,275 rupees per 100 kg at the Kolhapur spot market in the top-producing Maharashtra state.
Indian sugar mills produced 4.9 million tonnes between Oct 1 and Dec. 15, up 2 per cent from a year earlier.
“Imported white and raw sugar is coming at lower prices. That is not allowing local prices to harden,” Kuvadia said.
Pakistan has allowed another 500,000 tonnes of sugar exports, bringing the total to 1.2 million so far this year, as it seeks to generate foreign exchange for state coffers and revenue for cash-strapped mills.