NEW DELHI: Indian sugar futures rose on Monday on expectations the government will soon remove some curbs on the tightly controlled industry.
But the overall sentiment remained bearish as a pick-up in cane crushing by mills and higher imports swelled supplies in a surplus season, dealers said.
The most-active sugar for May delivery on the National Commodity and Derivatives Exchange was 0.54 percent up at 2,993 rupees per 100 kg at 1102 GMT.
India, the world's second-biggest producer of sugar after Brazil, has been exploring options to free up the sector from various controls to avoid cycles of oversupply and shortage.
"As we know the news of removing curbs on sugar has been doing the rounds and the trade believes the government could soon take a decision but overall the scenario is quite bearish," said Mukesh Kuvadia, secretary of the Bombay Sugar Merchants Association.
The federal cabinet is expected to take a decision on the reform issue this week.
Demand for sugar from ice-cream and beverage makers typically rises during the summer. However, the demand has been subdued so far this year.
The South Asian country is likely to produce 24.6 million tonnes of sugar in the current crop year ending Sept. 30, versus local demand of about 23 million tonnes.
Spot sugar fell 3 rupees to 3,030.85 rupees per 100 kg in the Kolhapur market in top-producing Maharashtra state.
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