Indian sugar futures for May fell for the 10th straight session on Monday as a cool spell in parts of the country raised worries of weak demand from makers of cold beverages and ice-creams just as the supplies were increasing.
The April contract fell for the 11th straight session. However, analysts say the fall was overdone and prices could soon pick up on short-covering and some fresh interest at the lower prices. The April contract on the National Commodity and Derivatives Exchange ended down 1.93 percent at 1,374 rupees ($34.4) per 100 kg. The May contract, the current benchmark, fell 1.90 percent to 1,444 rupees.
"Supplies in the local market will be much higher in coming month after government released sugar from the buffer stock to be sold between May and September," an analyst in Motilal Oswal Commodities Broker Pvt Ltd, said. The government released 2 million tonnes of additional sugar from the buffer stocks to be sold by the millers during May to September.