Spot Market Update: Sugar Gains Further

Sugar saw some buying ahead of festive demand. Recent losses in the prices also triggered some bargain buying. The government has extended the sugar export deadline for exporting 2 million tonne of sugar by three months, i.e. till December, since only 25% of the stated target has been shipped, according to media reports. The commodity broke above Rs 3100 per quintal in Muzaffarnagar this week and currently quotes at Rs 3170 per quintal, up 0.11% on the day. Indias 2018-19 season sugar production is set to increase by about 10%, according to Indian Sugar Mills Association (ISMA), a private sugar industry body. It expects sugar production to touch anywhere between 350 lakh tonnes and 355 lakh tonnes in 2018-19, from 322.5 lakh tonnes in 2017-18. This is about 28-33 lakh tonnes more than 2017-18 sugar season production of around 322.5 lakh tonnes.