Indian sugar futures extended last week's losses on Monday on sluggish demand and rising supplies, though hopes the government will decontrol the tightly controlled industry limited the downside. As of 0956 GMT, the key April sugar contract on the National Commodity and Derivatives Exchange was down 0.49 percent at 3,028 rupees per 100 kg.
"Supplies are surpassing demand in local and overseas markets. Unless the government decontrol the sugar sector prices would remain under pressure," said Badruddin Khan, associate vice-president of research at Indiabulls Commodities Ltd. India, the world's second-biggest producer of sugar after Brazil, has been exploring options to free up the sector from various controls to avoid cycles of oversupply and shortage. The government has been considering relaxing controls on the sugar industry, Food Minister K.V. Thomas said on March 4. Demand for sugar from ice-cream and beverage makers typically rises during the summer.