October 7, 2013 / 9:45 AM / 4 years ago

India sugar eases on subdued demand, bumper output

MUMBAI, Oct 7 (Reuters) - Indian sugar futures eased on Monday as demand remained muted in the spot market amid ample supplies, though expectations that upcoming festivals would lift demand limited the downside.

* At 0919 GMT, the key November contract was down 0.17 percent at 2,893 rupees ($46.90)per 100 kg on the National Commodity and Derivatives Exchange. The contract fell to 2,887 rupees on Sept. 28, the lowest in more than 15 months.

* “Retail and stockists’ demand is still weak. Market is oversupplied. Many mills in Maharashtra and Uttar Pradesh are floating tenders as they need money to make cane payments,” said a Kolhapur-based dealer.

* Spot sugar fell 18 rupees to 2,942 rupees per 100 kg at the Kolhapur market in top producing Maharashtra state.

* India will celebrate the Hindu festivals of Dussehra in the third week of October and Diwali in the first week of November, when demand for the sweetener usually rises.

* India’s sugar output is expected to be 25 million tonnes in the new season that started on Oct. 1, higher than the estimated demand of 23 million tonnes per annum, a leading industry body said.

* India’s carry-forward stocks of sugar on Oct. 1 are estimated at 8 million tonnes, up from 6.2 million tonnes a year earlier.

* India could export as much as 3 million tonnes of sugar in 2013/14 to get rid of excess supply, capitalising on rising demand from Southeast Asia, the Middle East and Africa.

$1 = 61.6900 Indian rupees Reporting by Rajendra Jadhav; Editing by Sunil Nair

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