Indian sugar mills association

Sugar heads for 6th weekly dro

Date:	26 Nov 2011

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News ID:	731

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Nov 25: Sugar headed for a sixth weekly drop in London after India`s government confirmed the country may allow additional exports while Cocoa declined.

“India will consider more exports after assessing the pace of cane crushing in the season that began on October 1,” Food Minister KV Thomas said on Friday. “Producers in the Asian nation expect the government to permit an additional 1 million tonne to be shipped by the end of next month,” Vinay Kumar, managing director of National Federation of Cooperative Sugar Factories , said on November 23.

“Sugar and cocoa are justifiably treading lower, as newly harvested supply growth weighs on the market,” Macquarie Group analyst Kona Haque said. “Sugar prices will likely continue to weaken until the second quarter of 2012.”White sugar for March delivery was little changed at $602.70 a tonne in London. The contract is down 3.3% this week. Raw sugar for March delivery fell 0.5% to 22.97 cents a pound on ICE Futures US in New York.

A panel of Indian ministers, headed by finance minister Pranab Mukherjee, approved overseas sales of 1 million tonne of the sweetener on November 22. India may have 2 million to 3 million tonne of surplus sugar to export, according to Societe Generale. Production there is likely to grow by 2.05 million tonne to 28.05 million tonne in the 2011-12 season started last month, the International Sugar Organisation estimated.

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