MUMBAI, Feb 25 (Reuters) - India sugar futures recovered after opening down on Wednesday on lower output forecast for 2008/09 and expected rise in global sugar deficit in the current year ending September 2009, analysts and a trader said.
However, the government’s decision to impose stock limits on sugar weighed on the market, they added.
At 10:47 a.m. the April contract NSMJ9 on the National Commodity and Derivatives Exchange was up 0.60 percent at 2,175 rupees per 100 kg.
The International Sugar Organization on Tuesday raised its 2008/09 (October/September) global sugar deficit forecast to 4.3 million tonnes from a previous forecast of a 3.6 million tonne shortfall.
The ISO put world production in 2008/09 at 161.5 million tonnes, down more than 4 percent from the prior season’s 168.6 million, with consumption rising more than 2 percent to 165.8 million despite the global economic crisis. See[ID:nBOM348144]
India’s farm minister on Tuesday said the country’s output may be about 16.5 million tonnes, lower than earlier expectations of about 18 million tonnes and much lower than last year’s estimated output of about 26.3 million tonnes. (Reporting by Abhishek Shanker; Editing by Sunil Nair)
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