Sugar prices across major cash markets are likely to trade weak in the week to Tuesday as the market waits for the government to announce the intended sops for the industry and on the likely supply glut, industry officials and dealers said today. | |
| "The buying has waned and selling pressure increased as expected. The only trigger for prices to rise will now come when the government announces the intended sops," said a Delhi-based dealer. |
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| Last week, Agriculture Minister Sharad Pawar had said the Cabinet would take a decision in two-three weeks, on extending sops to raw exports on similar lines to incentives already announced for white sugar exports. |
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| The Centre would also take a call on allowing mills to defer their excise duty payments until 2010. This comes as a boon as the industry has been overwhelmed with supplies coupled with falling prices due to higher output projections. |
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| India's sugar output in the current sugar season ending September is seen around 28 million tonnes, about 45 per cent higher from 19.3 million tonnes in 2005-06 (October-September). |
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| Also the government is mulling allowing mills to manufacture ethanol directly from cane juice besides working on a debt-restructuring plan for mills. |
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| "For the week, sugar prices may trade with more bias on the lower side until and unless there is a positive signal from the government to support prices," said a research report from Karvy Comtrade. |
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