Indian spot sugar falls for 4th day on weak demand

MUMBAI,(Reuters) - Sluggish demand and improved supplies after mills in southern and western states began crushing pulled down Indian spot sugar price for a fourth day on Wednesday, dealers said.

However, the downside is limited as rains are impeding crushing operations, they added.

In Kolhapur, a key market in top sugar producer Maharashtra, the price of the most traded S-variety sugar dropped 1.65 percent to 3,291.4 rupees ($71) per 100 kg.

In the absence of any major festival demand usually remains subdued in November, said a trader based in Vashi spot market near Mumbai.

"Rains may change things for short-term. They are likely to slow down crushing operation," he said.

Unseasonal rains in western and southern parts of India could slow down crushing of sugar cane, and industry officials said on Tuesday, crushing is likely to stay subdued for a week as more showers are forecast. See [ID:nBOM501932]

India may import 2.5-3 million tonnes of the sweetener in 2010/11 as domestic output is seen falling short of demand for a third straight year, an industry official said on Wednesday.

source:reuters