Sugar continues to fall

COMMODITY SPIKES

Despite the talks of lifting the export ban, sugar prices continued to fall in the first week of the year. Moving in tandem, the spot as well as the futures closed close to each other.

The near month sugar futures on the Ncdex fell by Rs 28 (1.7 per cent) to Rs 1,619 a quintal from the week's opening of Rs 1,647. In the spot market too, the prices fell from the week's opening of Rs 1,692 a quintal to Rs 1,627, registering a little less than 4 per cent decline.

In the domestic market, the rates plunged to Rs 1,627 as against Rs 1,638 a quintal. According to analysts, lifting of the ban on exports will not solve the problem as world-wide, the production is on the rise and exports will not be profitable.

Moreover, the demand in the physical market has also dipped. Earlier, some sugar bodies had said that the prices will remain stable. The current decline in prices is in direct contrast to what they said.