NEW DELHI, Nov 12 (Reuters) - Indian sugar futures fell on Monday as the market reeled under selling pressure after the government asked mills to sell more in the open market, dealers said on Monday.
* Mills also sold extra quantities to improve their cash flows ahead of the new season when sugar companies need to pay farmers for cane purchases, dealers said.
* The key December contract on India's National Commodity and Derivatives Exchange closed down 0.18 percent at 3,309 rupees ($60.25) per 100 kg.
* At the Kolhapur spot market in the top sugar producing Maharashtra state, sugar closed flat at 3,450 rupees per 100 kg.
* "It's the start of the season and mills need liquidity to buy cane from farmers and, therefore, there i s some selling pressure," said Mukesh Kuvadia, secretary of the Bombay Sugar Merchants Association.
* Higher allocation by the government also put downward pressure on sugar, Kuvadia said.
* The government has asked millers to sell 4 million tonnes of sugar in the open market during October and November, higher than the average monthly allocation of around 1.7 million tonnes.
India's sugar output in the 2012/13 crop year, which started on Oct. 1, is likely to fall to 23.5-24 million tonnes from 26 million tonnes a year earlier. ($1 = 54.88 rupees) (Reporting by Mayank Bhardwaj; Editing by Anupama Dwivedi)