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Sugar Futures on NCDEX closed higher last as India’s sugar production fell by 10 % to 128.6 lt in the first four months of the 2016 - 17 marketing year that started Oct ober last, due to lower cane production in Maharashtra because of drought. Earlier, ISMA assures that the supplies are comfortable and the country won't need to import sugar this season. 

ISMA has lowered sugar production estimate for 2016 - 17 to 21.3 mt by about 9 % compared to 23.37 mt, projected in Sep 2016. Raw sugar futures on ICE rallied to a 2 - 1/2 - month high on Friday, on support from chart - based buy signals and expectations for demand from top consumer India, while the market made its biggest weekly rise in four weeks.

Outlook 

We expect sugar prices to trade sideways to higher on reports of good physical demand from the industrial buyers and stockists and lower sugar production by the ISMA this season.