Indian sugar futures extended a fall on Friday, as a nearing contract expiry and sales by millers in a northern state took losses this week to more than 4 percent. The July contract on the National Commodity and Derivatives Exchange was down 0.53 percent at 1,308 rupees ($32.4) per 100 kg.
The August contract fell 0.74 percent to 1,339 rupees. "No one wants delivery of sugar as the demand is low in the physical market," Dinesh Somani, analyst with Indiabulls Commodities Pvt Ltd, said. This was putting pressure on the July contract, which expires in two weeks, he said. Millers in Uttar Pradesh, a leading sugar producing state, have also stepped up sales to repay about 27 billion rupees they owed sugarcane farmers, traders said.