MUMBAI: Indian sugar futures were treading water on Thursday as millers kept prices steady despite sluggish demand while stockpile rose as crushing gained momentum in all key producing states.
The key February sugar contract on the National Commodity and Derivatives Exchange was unchanged at 3,254 rupees ($59.93) per 100 kg by 1026 GMT.
Sugar nudged up one rupee to 3,258 rupees per 100 kg in the Kolhapur spot market in the top-producing Maharashtra state.
"Supplies are comfortable, but demand is still weak due to winter season," said Badruddin Khan, associate vice-president of research at Indiabulls Commodities Ltd.
"Mills are under pressure. They can't slash prices. Their production cost has risen due to hike in cane prices."
Demand for the sweetener from bulk consumers like cold-drink and ice-cream makers usually drops in India during the winter season.
Mills in India are expected to churn out 24 million tonnes of sugar in 2012/13, down from 26 million tonnes in the previous year, but higher than the expected local consumption of about 22 million tonnes.
India's sugar output rose 3 per cent to 10.8 million tonnes in the first three-and-a-half months of the season beginning October, a leading industry body said on Thursday.
