MUMBAI: Sugar futures fell on July 19 to their lowest level in more than two months, hit by sluggish demand and ample supplies due to surplus production in three consecutive years. The key August contract on the National Commodity and Derivatives Exchange was down 0.46 per cent at 3,016 rupees ($50.60) per 100 kg at 0904 GMT, after falling to 3,014 rupees earlier in the day, the lowest level since May 11. "The supply surplus is weighing on sentiments. Demand is weak. Mills are hopeful the festival season will lift demand," said Chowda Reddy, a senior analyst with JRG Wealth Management. Spot sugar edged down 3 rupees to 3,057 rupees per 100 kg at the Kolhapur market in Maharashtra state. Ice cream and beverage makers typically trim sugar purchases during the monsoon as lower temperature hits demand for their products. India's sugar output in the 2013/14 marketing year beginning October is likely to drop 5.2 per cent from a year earlier to 23.7 million tonnes, compared with a local demand of around 23 million tonnes. A lack of Pakistani sugar available for exports and strong demand before Ramadan have created opportunities for Indian sales to nearby markets, but the window for foreign sales risks closing soon. ($1 = 59.6050 Indian rupees)

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