Indian sugar futures extended losses on Friday to hit contract lows, hit by sluggish demand amid mounting supplies and as the government delayed a decision on decontrol of the sugar industry. As of 0919 GMT, the key April sugar contract on India's National Commodity and Derivatives Exchange was down 0.49 percent at 3,035 rupees per 100 kg, after falling to 3,032 rupees earlier.
"Bulk consumers are not making big purchases. They know supplies are ample and pressure is on mills to generate liquidity. They are keeping lower inventory," said Mukesh Kuvadia, secretary of the Bombay Sugar Merchants Association. Demand for sugar from ice-cream and beverage makers typically rises during the summer.
The south Asian country is likely to produce 24.3 million tonnes of sugar in the current crop year ending on September 30, against local demand of about 23 million tonnes. Spot sugar edged up 5 rupees to 3,134 rupees per 100 kg in the Kolhapur market in top-producing Maharashtra state. "Decision on sugar decontrol has been awaited for a long time. Any decision on freeing up sugar industry can support prices," Kuvadia said.
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