Spot sugar fell 20.75 rupees to 3,355.40 rupees per 100 kg at Kolhapur in top-producing Maharashtra state. "Prices are on the weaker side due to higher supplies and there are reports of good crushing in south India," said Shikha Mittal, an analyst with Karvy Comtrade in Hyderabad.
Selling is advised at 3,285 rupees for a target of 3,250, with a stop loss of 3,305 rupees, said Mittal. The government has allowed sugar mills to sell 7 million tonnes of sugar in the open market between December and March, including 200,000 tonnes of unsold stock from the October-November period, higher than the average monthly allocation of about 1.7 million tonnes. In Uttar Pradesh and Maharastra, farmers and mills are waiting for the state government to announce the state-advised price for cane.