Indian sugar futures hit a record high on Thursday on expectations of lower production and good demand in the summer season. The most active May sugar contract was 0.78 percent higher at 3,637 rupees per 100 kg at 1310 GMT, after hitting an all-time high of 3,646 rupees.
Indian sugar mills have so far produced 1.1 million tonnes less sugar in the marketing year that began on October 1 as compared to the corresponding period last year, according to a producers' body of private mills, and the federal government has lowered its sugar output estimate by 1.4 percent from a previous official forecast. Traders and analysts said prices could surge by another 200 rupees in the next two months.