Indian sugar contracts fell on Monday on higher supplies in the spot market and weighed down by concerns the government may curb futures trading to contain inflation that has climbed to a 3-year high. At 3:30 pm (1000 GMT), the May contract was down 1.2 percent at 1,405 rupees ($34.6) per 100 kg on the National Commodity and Derivatives Exchange, while the June contract dropped 0.88 percent to 1,465 rupees.
Traders are worried about growing demands from politicians to ban futures trading in commodities. Annual inflation hit nearly 8 percent in mid-April. The government, which controls the sugar trade in India, has allowed millers to sell 1.35 million tonnes in the open market in May, lower than April's quota of 1.7 million tonnes.
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