NEW DELHI, Jan 2 (Reuters) - Indian sugar futures fell on
Thursday as cane crushing in the top three sugar producing
states gathered momentum, swelling supplies and bumping up
stocks at mills' warehouses.
* At 0905 GMT, the key January contract was down
0.18 percent at 2,815 rupees ($45.51) per 100 kg on the National
Commodity and Derivatives Exchange.
* "Crushing is in full swing now and supplies have picked
up, adding to the woes of mills struggling to sell sugar when
there are plenty of stocks all around," said Mukesh Kuvadia,
secretary of the Bombay Sugar Merchants Association.
* Indian sugar mills produced 5.74 million tonnes of the
sweetener between Oct. 1 and Dec. 30, about 29 percent lower
year-on-year. Between Oct. 1 and Dec. 15, output was down 50
* Spot sugar was down 39.10 rupees per 100 kg to 3,090.00
rupees per 100 kg at the Kolhapur market in Maharashtra.
* India started the new sugar marketing year on Oct. 1 with
carry-forward stocks of 8.8 million tonnes. It is expected to
produce 25 million tonnes this year against a demand of 23
* Worried over slumping prices, rising stocks and mills'
inability to pay cane growers, the government last month
approved a $1.0-$1.1 billion loan to mills to help pay
government-set prices to cane growers.
* The government now looks likely to give some more
incentives to mills to produce raw sugar that can be sold on the
($1 = 61.85 rupees)
(Reporting by Mayank Bhardwaj; Editing by Sunil Nair)