Mumbai: Indian sugar futures fell on 8 October due to a government delay to approve support measures such as allowing the production of ethanol directly from sugarcane to help millers saddled with huge supplies.
At 2 p.m., the October contract on the National Commodity and Derivatives Exchange was down 0.53% at Rs1,313 ($33.3) per 100 kg. The November contract fell 0.47% to Rs1,269.
“The millers have huge surplus and fresh crushing is about to begin, which will put more pressure on prices. Only government initiatives can support prices,” Dinesh Somani, an analyst with Indiabulls Commodities Pvt Ltd, said.
The market has also been waiting for long for an extension of freight subsidy, which ends in April 2008, by another year, he said. An early decision will help exporters to reach deals.
India is expected to produce a record 33.15 million tonnes in the season that began on 1 October, the International Sugar Organisation has said, up from 29 million tonnes a year earlier. Annual domestic consumption is only about 19.5 million tonnes.