NEW DELHI, Sept 21 (Reuters) - Indian sugar futures fell on
Friday due to poor demand, higher inventory with mills and
forecasts of surplus output in the next season beginning
October, traders said.
* The key October contract on India's National
Commodity and Derivatives Exchange was down 0.53 percent at
3,566 Indian rupees ($66.32) per 100 kg at 1010 GMT.
* In the Kolhapur spot market in Maharashtra, sugar was
steady at 3,565 per 100 kg.
* "Demand is typically subdued towards the end of the month
and we know that mills have ample stocks and estimates suggest
we have surplus in the 2012/13 season as well," said Mukesh
Kuvadia, secretary of the Bombay Sugar Merchants Association.
* Sugar inventory on Oct. 1, when the new 2012/13 season
begins, is estimated at 6 million tonnes, up from 5.5 million
tonnes in the previous year, the Indian Sugar Mills Association,
a producers' body, said.
* For the third year in a row, India is likely to produce
more sugar than it can consume domestically in the marketing
year starting from Oct. 1, although the exportable surplus will
be small, Food Minister K. V. Thomas said.
* In August, India released 400,000 tonnes of additional
non-levy sugar for the September quarter, over and above the
previous allocation of 4.766 million tonnes, to limit price rise
during the festival season.
* Non-levy, or free-sale, sugar is sold by millers in the
open market, but the quantity each mill can sell is fixed by the
(Reporting by Mayank Bhardwaj; Editing by Anupama Dwivedi)