KUALA LUMPUR, July 30 (Bernama) -- Bursa Malaysia's key index closed at an intraday high today, supported by continued buying interest even as renewed geopolitical tensions and a weaker overnight lead from Wall Street following the US Federal Reserve's (Fed) decision to stand pat on interest rates weighed on broader sentiment. The Fed has decided to hold rates steady for the fifth consecutive meeting, with the Federal Funds Rate unchanged between 3.50 per cent and 3.75 per cent. At 5 pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) rose 4.84 points to 1,720.40 from yesterday’s close of 1,715.56. The benchmark index, which opened 1.14 points lower at 1,714.42, hit its lowest level of 1,710.69 in early trade before gaining momentum for the rest of the day. However, the broader market was negative with losers outpacing gainers 581 to 411, while 612 counters were unchanged, 1,173 untraded, and 87 suspended. Turnover declined to 2.49 billion units valued at RM2.25 billion from ...
India will continue to restrict sugar exports to ensure sufficient domestic supplies and to boost ethanol production, according to sources familiar with the matter.
Key Points:
- Domestic Supply and Prices: The government aims to maintain enough sugar for the local market at reasonable prices and use more cane for ethanol production.
- Export Restrictions: Allowing exports is currently not being considered, the sources said, as the discussions are confidential.
Impact on Local Producers:
- Local sugar mills, which have been advocating for the relaxation of export restrictions, will be adversely affected by this decision.
- The curbs should help support global sugar prices, which have decreased by around 12% this year. India is the world’s second-largest sugar producer.
Government's Position:
- A spokesperson for India’s food and commerce ministries did not respond to a request for comment.
- India introduced a quota system for sugar exports in the season ending September 2023 due to poor output, limiting shipments to about six million tons, down from 11 million tons the previous year.
- The export restrictions were extended in October to keep local prices stable ahead of national elections held between April and June.
Ethanol Production Target:
- Prime Minister Narendra Modi aims to increase ethanol blending in gasoline to 20% by October 2026, contributing to the decision to maintain export restrictions.
Industry Perspective:
- The Indian Sugar and Bio-energy Manufacturers Association stated last month that India would have more than nine million tons of sugar in inventory by the end of the season on Sept 30, sufficient for domestic consumption, exports, and the ethanol blending program.
- However, sources indicated that stockpiles may only be around 8.5 million tons by that date.
India’s continued export curbs are set to impact local sugar mills while supporting global prices, as the government prioritizes domestic supply and ethanol production targets.
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