Sugar up on hopes of additional exports Close.

 Indian sugar futures rose for the second straight session on Thursday on hopes the government will allow more exports due to surplus output this year, dealers said.

* Food Minister K. V. Thomas on Wednesday said the government is likely to consider extra sugar exports in the 2011/12 season.

* The key May sugar contract on the National Commodity and Derivatives Exchange was up 0.78 percent at 2,857 rupees ($55.17) per 100 kg at 0837 GMT.

* "Sugar has risen purely on the news that the government could think about allowing some more for exports," said Mukesh Kuvadia, secretary of the Bombay Sugar Merchants Association. "Otherwise, local demand is weak because of lower purchases by ice cream and soft drink companies as the summer is very mild."

* India has already allowed 2 million tonnes of open general licence (OGL) exports in the 2011/12 season. Ministers on March 26 agreed to permit an extra 1 million tonnes but the food ministry is yet to issue an official order for shipments.

* On Tuesday, a producers' body said the country had produced 24.63 million tonnes of sugar between Oct. 1 and April 15, up 13.3 percent from the year ago period.

* Benchmark U.S. sugar futures will drop to around 20 cents a pound, a level last seen in May 2011, in the second quarter due to rising supply in key producers, but Chinese purchases could limit the decline, the Commonwealth Bank of Australia said.

* Reuters analyst Wang Tao said New York sugar is expected to fall to a support at 22.07 cents per lb, a break below which will trigger a further loss to 21.59 cents.

* The price was up 6 rupees at 2,914 rupees per 100 kg in the spot market in Kolhapur, in top producing Maharashtra state.

* India is estimated to produce 26 million tonnes of sugar in 2011/12, higher than the annual demand of about 22 million tonnes. ($1= 51.78 Indian rupees) (Reporting by Mayank Bhardwaj; Editing by Aradhana Aravindan)

Source : economictimes.indiatimes.com