FMC likely to extend sugar futures trade ban

FMC likely to extend sugar futures trade ban

Mumbai: The Forward Markets Commission (FMC) on Saturday said suspension of futures trading in sugar is likely to be extended due to the production shortfall in the country.

“It is very difficult to restore it (revoke the ban)," Forward Markets Commission (FMC) chairman BC Khatua told reporters on the sidelines of a function here.

India suspended sugar futures trade from the first week of May this year until 31 December to bring down sugar prices quickly.

The government decision to ban sugar futures came at a time when investors were expecting futures trading in other commodities such as rice, tur and urad.

According to industrial estimates, the country’s sugar production is likely to be 16-17-million tonnes in the marketing year beginning 1 October, while consumption is about 23 million tonnes.