NEW DELHI, May 24 (Reuters) - Indian sugar futures fell on
Friday, extending losses from the previous session, due to
higher supplies and weak demand despite the summer season, which
usually helps sugar sales.
* Lower global prices also weighed on the contract. The
benchmark July raw sugar contract settled at 16.76 cent a
lb on Thursday, hovering around the lowest level for the front
month since July 2010.
* The key June contract on the National Commodity
and Derivatives Exchange was down 0.65 percent at 3,035 rupees
per 100 kg at 0856 GMT.
* "Every one -- right from mills to bulk buyers have higher
stocks and supplies are more than plenty," said Mukesh Kuvadia,
secretary of the Bombay Sugar Merchants Association. "Lower
global prices have also dragged down prices," he said.
* Demand for sugar from ice cream and beverage makers
typically rises during the summer.
* But there are concerns that sugar output in the
top-producing Maharashtra state may fall sharply due to drought.
* Sugar cane is a perennial, water-intensive crop and is
usually harvested 10 to 16 months after planting. Cane for the
crushing season starting Oct. 1 has been planted, but half the
total acreage is short of water.
* Spot sugar dropped 10 rupees to 3,400 rupees per 100 kg at
the Kolhapur market in the top-producing Maharashtra state.
* Farmers have planted cane on 4.07 million hectares as of
May 17, compared with 4.57 million hectares during the same
period a year earlier, agriculture ministry data showed.
* India is likely to produce 24.6 million tonnes of sugar in
2012-13, an industry body has said, against an annual demand of
about 23 million tonnes.
(Reporting by Mayank Bhardwaj; Editing by Anand Basu)