Sugar futures drop on rise in supplies

MUMBAI: Sugar futures fell on Friday as weakness in overseas markets prompted traders to book profits and due to a jump in supplies as crushing in the country's leading sugar producing state picked up.

At 3:24 p.m. (0954 GMT), the November contract on the National Commodity and Derivatives Exchange was down 1.12 percent at 1,770 rupees ($37.1).

The December contract, which had risen 4.1 percent in last six sessions, had fallen 1.25 percent to 1,812 rupees.

Mills in the western state of Maharashtra have started crushing, pressuring prices, said Veeresh Hiremath, an analyst with Karvy Comtrade Ltd.

Operations in the No. 2 ranked producer, Uttar Pradesh, have been delayed as millers have challenged in the courts the minimum price the state government has set for cane.

The northern state last month asked mills to pay farmers 140 rupees ($2.95) per 100 kg, up 12 percent from 125 rupees a year ago.

Spot prices in Maharashtra eased 0.19 percent to 1,789 rupees. However, the spot price has risen 3.47 percent in the last six days as an auspicious period for marriages pushes up consumption.