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Indian sugar futures were little changed on Monday afternoon, as bulk buyers returned to the spot market after prices had fallen more than 7 percent this month on higher supplies. Traders said demand was picking up ahead of festivals next month, but millers were under pressure to liquidate buffer stocks or risk the government taking them over at state-set low prices.
At 2:06 pm (0836 GMT), both the October futures and November futures were flat at 1,684 rupees ($36.7) and 1,733 rupees per 100 kg respectively. The September contract, which expires on Friday, eased 0.06 percent to 1,638 rupees. Spot prices in Maharashtra, the country's largest sugar producing state, were steady at 1,700 rupees. "Sugar prices are expected to trade sideways, as demand in spot is likely to remain steady while selling by mills will keep prices under pressure," brokerage India Infoline Commodities Ltd said.

Copyright Reuters, 2008

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