Indian sugar futures edged higher on Wednesday on bargain buying driven by a delay in cane crushing and hopes the government would take steps to arrest falling prices. Ample supplies and tepid demand from bulk consumers limited the upside.
The key December contract was up 0.25 percent at 2,838 rupees ($45.44) per 100 kg on the National Commodity and Derivatives Exchange at 0939 GMT. It fell to 2,801 rupees last week, its lowest since June 8, 2012.
"Futures rose on lower-level buying. A sharp upside is unlikely due to higher carry-forward stocks," said Subhranil Dey, an analyst with SMC Comtrade.
"Traders are waiting for government measures to support industry. Prices are unlikely to rise without government support."
India started the new sugar marketing year with carry-forward stocks of 8.8 million tonnes. It is expected to produce 25 million tonnes this year against a demand of 23 million tonnes.
Demand for sugar from bulk consumers like ice-cream and cold drink makers usually drops during winter.
Spot sugar fell 12 rupees to 2,885 rupees per 100 kg at the Kolhapur market in Maharashtra.
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