Sept open market quota extended

The open market sugar sale quota for the month of September has been extended up to October 15, a senior government official said on Friday.Only mills in Maharashtra, Gujarat, and Karnataka can sell the commodity in the open market during the extended period, he said.

"The quota for the month of September has been extended," said the official.

The government had set the sugar open market sale quota for September at 1.2 million tonne, unchanged from August.

The government sets the quantity of sugar each mill can sell in the market every month.

The sale of August quota had also been extended till September 10.

The quota for October has been set at 1.4 million tonne, while that for the entire October-December quarter is 3.7 million tonne.

According to Mukesh Kuvadia, joint secretary, Bombay Sugar Merchants' Association, around 100,000 tonne of sugar (of the monthly quota) is still lying with the millers in these states.

"The prices are likely to trade marginally lower after the news of extension of sale period," Kuvadia said.

"October contract on National Commodities and Derivatives Exchanges (Ncdex) will now find support at Rs 1,810 (per 100 kg) level," said Si Kannan of Sharekhan Commodities Pvt Ltd.

Spot and future prices had moved higher earlier in the week on higher offtake due to the festival season.

October M-grade contract traded at Rs 1,820 a 100 kg down Rs 6 from Thursday.