Indian sugar futures erased early gains and fell on Tuesday as traders locked in profits after prices had climbed more than 5 percent in two weeks. Firm spot prices and lower output forecasts limited the drop in futures and the outlook remained upbeat over the medium term with fewer supplies expected to underpin prices, traders said.
At 1:58 pm (0828 GMT), the January contract on the National Commodity and Derivatives Exchange was down 0.05 percent at 1,922 rupees ($39.5) per 100 kg. The February contract fell 0.41 percent to 1,949. Crushing of new crop cane was in full swing in the western state of Maharashtra, India's largest sugar producer, and will continue until March, but output so far this season has dropped 12-15 percent due to lower plantings as farmers shifted to other crops.