Indian sugar futures fell on Wednesday as deliveries started arriving at warehouses ahead of next week's near-month contract expiry, and weighed down by a bumper crop in the offing. At 1:45 pm (0815 GMT), the September contract on the National Commodity and Derivatives Exchange was down 1.05 percent at 1,321 rupees ($32.6) per 100 kg.
"The fall was triggered by deliveries at the exchange warehouse," a trader said. "People are squaring off their positions to avoid taking delivery at prices above spot quotes." An exchange official said about 1,500-2,000 tonnes of sugar from one miller was in the process of being delivered at the warehouse.
The October contract fell 0.31 percent to 1,297 rupees as bearish pressure strengthened on news India may replace Brazil as the world's top sugar producer.
The International Sugar Organisation said in its monthly report on Tuesday it expected India to overtake Brazil as world's top sugar producer with an estimated 33.5 million tonnes of sugar in 2007/08, up from 29 million tonnes a year. India annually consumes about 19.5 million tonnes.
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