Indian sugar futures rise on export subsidy hopes

Indian sugar futures rise on export subsidy hopes
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First Published: Thu, Sep 20 2007. 02 46 PM IST
Updated: Thu, Sep 20 2007. 02 46 PM IST
Reuters
Mumbai: Indian sugar futures rose on Thursday, 20 September, after the farm minister said the government might extend a freight subsidy for exports, which will help tackle surplus stocks.
At 1:45pm (0815 GMT), the October contract on the National Commodity and Derivatives Exchange was up 0.15% at Rs1,310 ($32.8) per 100 kg.
The November contract rose 0.8% to Rs1,258.
Farm Minister Sharad Pawar said the government was considering to extend the freight subsidy by one year to April 2009.
This will help exports and support the far month contracts, an analyst at Motilal Oswal Commodities Broker Pvt Ltd said.
The September contract hit the upper circuit of 6% for a second day on hectic short covering before the contract expires on Thursday. The contract was later trading up 3.63% at Rs1,428.
Exchange data showed the open interest has dropped 52% to 5,470 tonnes but was still way above 1,336 tonnes delivered at the exchange warehouse.
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First Published: Thu, Sep 20 2007. 02 46 PM IST
More Topics: Sugar | Futures | NCDEX | Sharad Pawar | Money Matters |