Sugar spot and futures prices may fall further in the next few days mainly on increased inflows from mills on reports of additional sugar release of 1.35 lakh tonne, despite good off-take by retailers and bulk consumers ahead of a series of festivals such as Ramzan Id and Dassera.
The central government has allowed sugar mills to sale 1.35 lakh tonne of non-lifted levy quota along with free sale quota in the open market for October. Of this, about 96,000 tonne would be allocated to four states i.e. 40,000 tonne Karnataka, 26,000 tonne Gujarat, 15,000 tonne each to Maharashtra and Tamil Nadu, market sources said.
This quota will be in addition to the open market sale quota of 16 lakh tonne released by the government for the current month. Thus, total availability for the current month would be 17.35 lakh tonne which is fair enough to cater the domestic demand, a local trader said. ?Overall supply is quite adequate to cater current month?s requirement. Demand from retailers and bulk consumer is good as a series of festivals are round the corner.