India sugar rises to over 1-week high on hopes of govt aid
summary：Indian sugar futures rose on Thursday to their highest level in more than a week on hopes the government would help mills to export raw sugar, though forecast of surplus production for the fourth straight year capped the upside....
Indian sugar futures rose on Thursday to their highest level in more than a week on hopes the government would help mills to export raw sugar, though forecast of surplus production for the fourth straight year capped the upside.* The federal cabinet approved a scheme of interest-free loans to sugar mills, Food Minister K.V. Thomas said last week, as part of a bail-out package for beleaguered mills.
* "After giving interest-free loans, the government will now consider providing some help to boost exports. Only exports can trim inventory and harden local prices," said a sugar miller based in Kolhapur, Maharashtra.
* At 0932 GMT, the key January contract was up 0.50 percent at 2,808 rupees ($45.35) per 100 kg on the National Commodity and Derivatives Exchange. It hit a high of 2,825 rupees earlier in the day, the highest level since Dec. 17.
* Spot sugar rose 2 rupees to 2,870 rupees per 100 kg at the Kolhapur market in Maharashtra.
* Demand for sugar from bulk consumers like ice-cream and cold drink makers usually drops during the winter.
* India started the new sugar marketing year on Oct. 1 with carry-forward stocks of 8.8 million tonnes. It is expected to produce 25 million tonnes this year against a demand of 23 million tonnes. ($1 = 61.9250 Indian rupees)