Sugar extends weakness on pick-up in supplies, low demand

Continuing its yesterday's slide, sugar prices fell by up to 50 paise in thin trading in the retail and wholesale markets weighed down by higher supplies from millers amid low demand at current levels from bulk consumers.
In the national capital's retail market, sugar prices traded lower by 50 paise at Rs 38.50 to Rs 39.50 per kg.
Marketmen said fall in the sweetener prices was mostly due to an improvement in the supplies from millers and slackened demand from bulk consumers as well as retailers.
"Besides rising arrivals in the market, decline in speculative activity, also put pressure on the sweetener prices," said a wholesale sugar trader.

About 7,000 bags arrived in the wholesale market as against yesterday's 6,000 bags.
In the sugar mill gate section, Budhana traded 50 paise to Rs 33.10 per kg, while Sakoti and Dhampur shed 10 paise each at Rs 33.10 and Rs 33.00 per kg, respectively.

Meanwhile, in order to bail out sugar mills that were unable to pay dues worth Rs 11,000 crore to cane growers, the government had earlier this week decided to hike import duty on sugar to 40 per cent and extended export subsidy of Rs 3,300 per tonne till September this year.
Besides, the government also decided to provide additional interest-free loans of up to Rs 4,400 crore, especially for clearing cane arrears.

On the other hand, in futures trading at the National Commodity and Derivatives Exchange (NCDEX), sugar for delivery in July recovered by Rs 6, or 0.19 per cent, to Rs 3,113 per quintal.