Indian sugar futures slipped more than 0.3 percent on Tuesday as traders squared off their positions in the absence of fresh initiatives by the government to help tied over a glut. "The market is now fearing no incentives would be announced during the week. This has brought a bearish trend," an analyst at a Mumbai-based brokerage said.
The market has been expecting measures to reschedule the debt of millers, saddled under huge stocks. At 1:45 pm (0815 GMT), the July contract on the National Commodity and Derivatives Exchange was down 0.37 percent at 1,348 rupees ($33.2) per 100 kg. The August contracts fell 0.43 percent to 1,379 rupees.
"The August contract is expected to trade in a narrow range but the July contract may fall sharply as the expiry of the contract on July 20 nears," the analyst said.