Indian sugar futures fell for a fourth straight session on Tuesday because of sluggish demand, rising supplies and on expectations a drop in overseas prices could boost imports in the coming months.
As of 1018 GMT, the key March sugar contract on the National Commodity and Derivatives Exchange was down 0.39 per cent at 3,054 rupees ($56.45) per 100 kg.
"Raw sugar import is a big concern. Prices are falling in the world market and the government hasn't raised the import duty yet. At current prices raw sugar imports are very attractive," said a Mumbai-based dealer, who declined to be named.
New York raw sugar futures fell to a 2-1/2 year low in early trade on higher supplies and as the dollar strengthened on concerns about political instability in Italy following an inconclusive election result.
Indian sugar mills have contracted more than 1 million tonnes raw sugar for the current season, dealers said.
Spot sugar fell 9 rupees to 3,191 rupees per 100 kg in the Kolhapur market in top-producing Maharashtra state.
India's sugar output rose 3 per cent to 13.8 million tonnes on year in the first four months of the season beginning October 2012.
"Unless the government takes some steps to liberalise, industry prices would remain under pressure," the dealer said.
India, the world's second-biggest producer of sugar after Brazil, has been exploring options to free the sector from various controls to avoid cycles of oversupply and shortage.

The south Asian country is likely to produce 24.3 million tonnes sugar in the current year ending on Sept. 30, against local demand of about 23 million tonnes.