Indian sugar futures fell on Thursday to their lowest level in nearly two months on sluggish demand and rising supplies as cane crushing gained momentum in all producing states. As of 0916 GMT, the January contract on India's National Commodity and Derivatives Exchange was down 0.46 percent at 3,254 rupees ($59.60) per 100 kg, after falling to 3,245 rupees, the lowest level for the second month contract since October 25.

Demand for the sweetener from bulk consumers like cold drink and ice cream makers usually drops in India during the winter season. Mills usually pay farmers a large chunk of the cane price immediately after harvest or within two weeks. Sugar was steady at 3,307 rupees per 100 kg at the Kolhapur spot market in the top-producing Maharashtra state.

Copyright Reuters, 2012