Sugar weakens on increased arrivals; falls up to Re 1 per kg

After rising for three straight sessions since the government announced a slew of measures to revive the industry, sugar prices fell up to Re 1 per kg today in the retail and wholesale markets on increased supplies from millers amid subdued speculative activity.
In the national capital's retail market, sugar prices were down by Re 1 to trade lower at Rs 39/40 per kg.
Traders said sugar prices which had been rising since the government announced measures to bail out the cash-starved industry were down by up to Re 1 per kg in retail as well as wholesale markets.
Besides, reduced offtake by bulk consumers and retailers at prevailing higher levels weighed on sweetener prices.

Nearly 6,000 bags arrived in the market as compared to 4,500 bags yesterday.
In the sugar mill gate section, Mawana eased by 60 paise to Rs 33.40 per kg, while Kinnoni shed 50 paise to Rs 33.70 per kg. Dorala traded 30 paise lower at Rs 33.30 per kg in the wholesale market.

Meanwhile, in futures trading at the National Commodity and Derivatives Exchange (NCDEX), sugar for delivery in July fell by Rs 18, or 0.58 per cent, to Rs 3,110 per quintal.
Generally, on an average 14,000-15,000 bags used to arrive in the capital before the government's measures to bail out the industry.

In order to bail out sugar mills that were unable to pay dues worth Rs 11,000 crore to cane growers, the government had on Monday 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.
India is the world's second largest producer as well as the largest consumer of sugar.