January 22, 2013 / 10:29 AM / in 5 years

Indian sugar drops for 3rd day as demand stays weak

MUMBAI, Jan 22 (Reuters) - Indian sugar futures fell for a third day on Tuesday on rising supplies and sluggish demand as bulk consumers were making fewer purchases due to winter season.

* The key February sugar contract on India’s National Commodity and Derivatives Exchange was down 0.4 percent at 3,245 rupees ($60.24) per 100 kg at 1020 GMT.

* Sugar eased by 2 rupees to 3,264 rupees per 100 kg in the Kolhapur spot market in the top-producing Maharashtra state.

* “Demand has been weak for the last few days. In the next few days it may remain stable at lower level. It may rise in the first week of February,” said Mukesh Kuvadia, secretary of the Bombay Sugar Merchants Association.

* Demand for the sweetener from bulk consumers like cold drink and ice cream makers usually drops in India during winter.

* India’s sugar output rose 3 percent to 10.8 million tonnes in the first three-and-a-half months of the season beginning October, a leading industry body said on Thursday.

* Mills in India are expected to churn out 24 million tonnes of sugar in 2012/13, down from 26 million tonnes in the previous year, but higher than the expected local consumption of about 22 million tonnes.

* India has contracted to import 920,000 tonnes of raw sugar since the season began in October, turning into a net importer for the first time in two years despite surplus stocks at home, a senior industry official said. ($1 = 53.8650 rupees) (Reporting by Rajendra Jadhav; Editing by Anand Basu)

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