Sugar Futures closed higher after two days of fall that the country will import sugar later in the season. As per the Chairman of All India Sugar Trade Association, India may need to import around 1.5 mt of sugar this 2016/17 season. India’s sugar production fell by 10 % to 128.6 lt in the first four months of the 2016-17 marketing year that started October last, due to lower cane production in Maharashtra because of drought.
We expect sugar prices to trade higher on anticipation of further increase in demand from the stockists on news that India needs to import sugar later in the season. The market is also waiting for any government policy regarding stock limit or import tax exemption which will pressurize prices.