Ban on sugar futures trade extended till Sept 2010

The government has decided to extend the ban on futures trading in sugar for another nine months till September 2010, commodity market regulator FMC said today.

"The ban has been extended till September next year," Forward Markets Commission Chairman B C Khatua said.

The curb on futures trading, which expires tomorrow, was imposed in May 26, 2009 to contain rise in price which was ruling high at Rs 36 a kg.

Khatua said that the regulator would review the ban next season beginning October 2010. Experts said the decision was on expected lines as India's sugar production is projected at about 16 million tonnes in this season ending September 30. The annual domestic demand is about 23 million tonnes, leaving a gap of 7 million tonnes which is being met through imports.