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Indian sugar futures rise after govt removes curbs

Source : REUTERS
Last Updated: Fri, Apr 05, 2013 08:30 hrs

NEW DELHI, April 5 (Reuters) - Indian sugar futures rose on Friday after the government removed curbs on the tightly regulated sector months after Prime Minister Manmohan Singh's top economic adviser recommended reforms.

* The government will no longer force mills to sell sugar to the government at a discount and will not limit the amount they can sell in the open market, Food Minister K.V. Thomas said on Thursday after the cabinet agreed the changes.

* "Sugar futures have gone up because of the government decision last night but going forward I see prices coming down as we are in a surplus year when exports have come to a halt because of lower global prices," said Praful Vithalani, who owns Indian brokerage Jagjivan Keshavaji.

* The most-active sugar contract for May delivery on the National Commodity and Derivatives Exchange was 0.17 percent up at 3,013 rupees per 100 kg at 0800 GMT.

* Shares of India's sugar producers, including Shree Renuka Sugars Ltd, surged on Friday after the government took steps to remove curbs on domestic sugar supplies.

* Sugar mills in India produced 23 million tonnes of the sweetener in the first six months of the current crop year, about 2 percent less than a year earlier.

* India is likely to churn out 24.6 million tonnes of sugar in 2012/13, an industry body has said, against an annual demand of about 22 million tonnes.

* Spot sugar rose 24 rupees to 3,100 rupees per 100 kg in the Kolhapur market in top-producing Maharashtra state. (Reporting by Mayank Bhardwaj; Editing by Jijo Jacob)




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