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Sugar prices up after nod for exports

Sugar prices on Wednesday rose in the futures and spot markets on back of government's decision to allow export of five lakh tonnes of the sweetener.

Sugar prices on Wednesday rose in the futures and spot markets on back of government's decision to allow export of five lakh tonnes of the sweetener.

Sugar prices surged by Rs 50 per quintal in the wholesale market in the national capital on back of government's decision to permit shipment of five lakh tonnes of sugar under open general licence.

Sugar ready medium and second grade prices improved from Rs 2,950-3,075 to Rs 2,980-3,125 and Rs 2,935-3,050 to Rs 2,970-3,100 per quintal, respectively.

Mill delivery medium and second grade prices rose from Rs 2,740-2,890 to Rs 2,775-2,925 and Rs 2,725-2,850 to Rs 2,760-2,900 per quintal, respectively.

Similarly, in the futures market at the National Commodity and Derivatives Exchange (NCDEX), sugar for delivery in April traded Rs seven or 0.25 per cent higher at Rs 2,783 per quintal at an open interest of 37,480 lots.

Likewise the sugar for delivery in May was up by Rs 15 or 0.53 per cent at Rs 2,864 per quintal at an open interest of 13,960 lots.

An empowered group of ministers (EGoM) on food had yesterday decided to allow sugar exports of up to five lakh tonnes under Open General Licence (OGL) as production this year is set to exceed the domestic demand.

India's sugar production is estimated at 24.5 million tonnes in 2011-12 sugar year (October-September) against 18.8 million tonnes in the previous year. The annual demand is pegged at 22 million tonnes.