| Date: |
14-01-2011 |
| Subject: |
India Sugar Plunges On Short Selling |
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Sugar futures have reported strong selling in today s trading on the back of extension in sugar export ban by Central Government. The NCDEX Benchmark contract wilted almost Rs. 15 per quintal today. As per latest update from Food Ministry restrictions may be imposed on sugar export until domestic prices cool off.
In order to moderate the prices of key commodities that have pushed the food inflation to 18.32 per cent the government plans to place severe restrictions on exports of several commodities.
Sugar exports of around 5 lakh tonnes were to have been allowed from this month after a decision of cabinet committee of economic affairs but the release orders for exports will be now withheld till January 30. This news has impacted the sugar prices negatively. The NCDEX January Benchmark contract was down almost Rs. 18 per quintal to trade at Rs. 2792 per quintal today.
Source : indiainfoline.com
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