Indian sugar futures eased on Tuesday after an industry body raised its countrywide output estimate for the current season, and a government official said subsidies to promote exports were temporary. The February contract on the National Commodity and Derivatives Exchange was down 0.63 percent to 1,414 rupees ($35.8) per 100 kg.
March contract had fallen 0.82 percent to 1,457 rupees. "The ISMA has increased production estimate. Besides, the government's statement about sugar subsidies also added downward pressure," said Lopa Sanghvi, an analyst with Anand Rathi Commodities Ltd.
The Indian Sugar Mills Association (ISMA) on Monday said India would likely produce at least 27.5 million tonnes of sugar this year, 5.8 percent above the government's estimate of 26 million tonnes. Also speaking on Monday, T. Nanda Kumar, secretary of the Department of Food and Public Distribution, told a sugar conference in Dubai that export subsidies, which triggered an angry response from Brazilian producers, were not a long-term policy.