Indian sugar futures ease on higher supplies

MUMBAI, Oct 6 (Reuters) - Indian sugar futures eased on Monday after a jump in October supplies, but spot prices held their ground on festival demand.

At 2:15 p.m. (0845 GMT), the October futures NSMV8 on the National Commodity and Derivatives Exchange was down 0.28 percent at 1,753 rupees ($38.25) per 100 kg, while the November futures NSMX8 eased 0.11 percent to 1,797 rupees.

Arrivals rose after the federal government, which controls the sector, last week increased supplies in October to about 2.1 million tonnes from 1.6 million tonnes in the same month last year.

Spot prices in Mumbai were steady at 1,830 rupees, bolstered by festivals ahead when demand for sweets peak.

Raj Kishore Baruah, an analyst at Sushil Global Commodities Pvt Ltd, said prices would rise in coming months because of a projected drop in output in 2008/09.

India's sugar output may fall 24 percent to about 20 million tonnes in the crop year ending in September 2009, industry and trade have forecast. ($1=47.5 rupees)
source:reuters