India sugar continues bearish trend on sluggish demand

The bearish trend in the sugar market advanced for fourth consecutive day on Thursday on follow through selling.
Sluggish demand, higher supply and government restriction on sugar trading led to fall in the prices. Poor off-take of the produce in the spot market and more supplies for March month kept the market under pressure.
The expected summer season demand has not yet emerged thus weighing on the market.
Market is reacting to the bumper sugar production expectation and continued government restriction on its trade.
Outlook
The sugar futures are expected to extend its bearish trend on Friday on continued selling pressure.
Poor offtake of the produce from the spot market and higher supply for the month of March is putting pressure on the price movement.
Restriction of sugar trade by the government in the form of stock limit, not-allowing sugar export and higher sale quota is likely to keep the prices under pressure.
For the month of March, central government announced 18.86 lakh tons of sugar as sale quota. This includes 2.02 lakh tons for sale through public distribution system and 16.84 lakh tons as free sale quota.
For February, this quantity was 18.39 lakh tons. The central government is deferring the decision to allow sugar export and it is continuing the policy of import at zero import duty.

(Source: http://www.commodityonline.com/futures-trading/technical/India-sugar-continues-bearish-trend-on-sluggish-demand-22498.html)