According to Angel Commodities, Sugar futures may trade on a mixed to positive note on export incentives likely for the white sugar though ample supplies of white sugar in the domestic market may cap the prices.
Angel Commodities report on Agri Commodities
Sugar future closed 0.23 per cent higher in the previous session due to good demand as in the spot market on anticipation of creating sugar buffer stock and expectation of government incentive to export white sugar though ample supply in the domestic market further capped the upside.
The government has pegged the sugar output at 26.5 million tonnes in the 2014-15 marketing year as against 24.3 million tonnes in the previous year.
As per the latest estimates released by the Indian Sugar Mills Association (ISMA), India produced 247.2 lakh tonnes (lt) of sugar till March end, about 11.5 per cent more than at the same time last season. Maharashtra, the country’s largest sugar producing State, produced 93.6lt, against an output of 70.6 lt last season.
The falling raw sugar prices in global markets making it unviable for the sugar mills to participate in exports despite export sops.
Earlier, the Cabinet Committee on Economic Affairs (CCEA) has approved incentive scheme for marketing and promotion services of raw sugar production during 2014-15 (October-September) for a quantity of 1.4 million tonnes.
Global Sugar Updates
According to International Sugar Organization (ISO) latest data release, the world production to reach a record 172.1 million tonnes in 2014/15 despite projected lower crops in several leading world sugar producing countries including Brazil, China and Thailand.
China import down 24 % from a year ago to nearly 1.24 lakh tonnes of sugar in February but imports for the first two months of 2015 came to 5.09 lakh tonnes, up 12.6 %, according to customs data. China's sugar production predicted to decline 12% against the backdrop of a 4% rise in demand.
Sugar futures may trade on a mixed to positive note on export incentives likely for the white sugar though ample supplies of white sugar in the domestic market may cap the prices.
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