NEW DELHI, Oct 31 (Reuters) - Indian sugar futures fell on
Thursday due to poor festival demand and more than ample
supplies from mills which are under pressure to sell to cut down
* The key December contract was down 0.18 percent at
2,847 rupees ($46.45) per 100 kg on the National Commodity and
Derivatives Exchange at 0945 GMT.
* "Festival demand has failed to pick up due to overall high
inflation and there is a lot of selling pressure from mills
struggling with huge stocks," said Mukesh Kuvadia, secretary
general of the Bombay Sugar Merchants Association.
* Constrained by large unsold stocks and lower prices, mills
in Uttar Pradesh, India's second biggest sugar producer, have
not been able to pay cane farmers and now owe them around 24
* India will celebrate the Hindu festival of Diwali in the
first week of November. Sugar demand from bulk consumers usually
rises ahead of Diwali.
* India started the new sugar marketing year with
carry-forward stocks of 8.8 million tonnes. It is expected to
produce 25 million tonnes this year against a demand of 23
* Spot sugar rose 11.10 rupees to 3,250 rupees per 100 kg at
the Kolhapur market in the top-producing Maharashtra state.
* A pickup in exports could help mills in trimming inventory
and support prices, dealers said.
* Indian traders have struck deals to export about 175,000
tonnes of raw sugar for December-January delivery, marking their
first sale in the new season that started on Oct. 1.
* A dispute over sugar cane prices between Indian farmers and
mills may curb sugar exports from the world's second-biggest
producer, delay crushing in the new season and even trigger
($1 = 61.29 rupees)
(Reporting by Mayank Bhardwaj; Editing by Anupama Dwivedi)