December 24, 2010

Govt. lifts ban on Sugar futures trading

Trading in Sugar futures which was banned by the government in May 2009, is set to resume from 27-Dec-2010 on commodity exchanges like MCX, NCDEX and ACE.

The market regulator had imposed a ban on sugar futures following last year following a drop in production which led to a steep increase in sugar price. However sugar production this year in India is projected to be around 25 million tonnes which exceeds the domestic demand of 23 million tonnes.

NCDEX had a daily turnover of Rs.100 crore to Rs.300 crore in sugar futures before the ban.