NEW DELHI, April 9 (Reuters) - Indian sugar futures rose on Tuesday, but dealers expect the contract to drop and sentiment to turn bearish in the near term as supplies and inventories have swelled after cane crushing peaked.
* After Thursday's decision of lifting curbs on the sugar sector, prices rose on Friday.
* The government will no longer force mills to sell sugar to the government at a discount and will not limit the amount they can sell in the open market, Food Minister K.V. Thomas said after the cabinet agreed the changes last week.
* "This is just a blip, you will soon see the bearish trend as fundamental remains very weak," said a dealer at a New Delhi-based brokerage.
* The most-active sugar contract for May delivery on the National Commodity and Derivatives Exchange was 0.2 percent up at 2,933 rupees per 100 kg at 1057 GMT.
* Sugar mills in India produced 23 million tonnes of the sweetener in the first six months of the current crop year, about 2 percent less than a year earlier.
* India is likely to churn out 24.6 million tonnes of sugar in 2012/13, an industry body has said, against an annual demand of about 22 million tonnes.
* Spot sugar fell 99 rupees to 2,950 rupees per 100 kg in the Kolhapur market in top-producing Maharashtra state. (Reporting by Mayank Bhardwaj; Editing by Anand Basu)