Indian sugar futures were treading water on Thursday as surplus supplies outweighed summer demand. The key May contract on India's National Commodity and Derivatives Exchange was down 0.17 percent at 2,950 rupees ($54.47)per 100 kg at 0905 GMT, after falling to 2,922 rupees in the previous session, its lowest level since April 9.
"Supplies pressure is weighing on sentiments. Ideally, prices should recover due to summer season demand, but mills are aggressively selling to generate cash for cane payments," said Chowda Reddy, a senior analyst with JRG Wealth Management. Mills usually pay farmers a large chunk of the cane price immediately after harvest or within two weeks. Demand for sugar from ice-cream and beverage makers typically rises during the summer. Spot sugar rose 19 rupees to 3,059 rupees per 100 kg in the Kolhapur market in the top-producing Maharashtra state.