Recently I read an article posted from India on this afternoon, we can see that the Indian sugar futures are fell to their lowest price on this Thursday. At 1038 GMT, the December contract on the India’s National Commodity and Derivatives Exchange is down 0.82 percent at 3266 rupees per 100 kg. According to the member of the Bombay Sugar Merchants Association said, the wholesale demand is pretty weak. Even the retail demand is also weak as the festival season is over. According to the article, we can see that the supply of Sugar will be decrease very soon. Therefore I trust that the price will be increase again.
According to the article, we can see that many sugar mills are still holding significant stocks from the November quota. It seen that most of them are under pressure as they need to sell their stocks in a week. Also we found that the main factors that influence the sugar price decrease is because most of the factories in Maharashtra delayed the cane-crushing because the farmers and mills couldn’t agree with the cane prices.
Beside that, we can see the government is trying to take some action to solve this situation, they asked millers to sell 4 million tonnes of sugar in the open market during October and November, and this is higher than the average monthly allocation of around 1.7 million tones. This may help to increase back the price of sugar and in order to save back this situation.
Reference list:
http://www.brecorder.com/markets/commodities/asia/91943-indian-sugar-drops-to-near-1-month-low-on-sluggish-demand-.html
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