Indian sugar futures fell on Monday to their lowest level in two weeks after a forecast for surplus production for a fourth straight year, though hopes of an improvement in demand from local and overseas buyers limited the downside.

At 0910 GMT, the key September contract was down 0.56 percent at 3,014 rupees ($47.09) per 100 kg on the National Commodity and Derivatives Exchange. It fell to 3,006 rupees earlier in the day, the lowest level since Aug. 10. Sugar output in India, the world's biggest consumer, is expected to exceed the current year's 25 million tonnes in the marketing year beginning October, on the back of good monsoon rains. Spot sugar was up 7 rupees at 3,054 rupees per 100 kg at the Kolhapur market in Maharashtra state.