Ban on sugar futures extended to Sep

Written by fe Bureau | New Delhi | Updated: Jan 1 2010, 03:49am hrs
To rein in sugar prices, the central government has extended the suspension of futures trading in sugar till September 2010. The curb on futures trading, which expires tomorrow, was imposed in May 26, 2009 to contain rise in prices which was ruling high at Rs 36 per kg.

We have extended sugar futures suspension till the end of September 2010...looking at the crop situation, it is not feasible to resume the futures now, BC Khatua, chairman of the Forward Markets Commission, said.

Khatua said the regulator would review the ban next season beginning October 2010. Meanwhile, in a separate development, the government has released 1.43 million tonne of non-levy sugar for January.

Non-levy, or free-sale sugar, is sold by millers in the open market, but the quantity each mill can sell is fixed by the government on a monthly basis.

The government has released 1.1 million tonne as normal non-levy sugar quota and estimates supplies of 280,000 tonne from imports and 50,000 tonne from December carry-forwards, taking supplies to 1.43 million tonne, an official statement said.

In December it had released 1.392 million tonnes of non-levy sugar. The levy sugar quota has been fixed at 209,000 tonne for January, it added.