MUMBAI, Aug 24 (Reuters) - Indian spot sugar prices were treading water on Monday as uncertainty over changes in sugar policy prompted stockists to postpone large purchases, traders said.
In Kolhapur, a key market in top producer Maharashtra, the price of the most traded S-variety sugar nudged 0.11 percent lower to 2,877.5 rupees ($59.3) per 100 kg.
"Government is trying to depress prices. What it decides in this week's meeting will determine the trend," said a member of the Bombay Sugar Merchants Association.
The Indian farm minister is holding a series of meetings with sugar mill owners to find ways to ease the shortage of sugar.
Indian Sugar Mills Association president said discussions between trade officials and the agriculture ministry would continue this week.
The market has been talking about decontrol of sugar release mechanism and increase in levy sugar quota since earlier this month. See [ID:nDEL361671]
Currently, the government decides the quantity of sugar to be released by mills in the domestic market. Besides, mills are forced to sell 10 percent of their output at low, state-set prices, and farm minister said this may be raised.
The country's peak festival season runs from August to October, when demand for sugar goes up as people consume more sweets and confectioneries.
India's sugar stocks dropped to 6 million tonnes on July 31, down 21 percent since the start of the month. See [ID:nDEL363715]
Trade forecasts a 45 percent drop in India's sugar output to 14.7 million tonnes in the crop year to September.
Indian sugar mills have contracted imports of 4 million tonnes of raw sugar in the current season. See [nDEL507897]
($1= 48.5 rupees)
No comments:
Post a Comment