India sugar futures seen lower on supplies.

Indian sugar futures may open a bit lower on Monday on a likely rise in supplies from imports of raw sugar and stock limit talk weighing on sentiment, analysts said.

The government is trying to rein in sugar prices ahead of nationwide elections that must be held by mid-May.

Traders have been speculating for the last few days the government may force them to dismantle their excess stocks.

The government earlier this month eased sugar import rules, allowing mills to buy raws at zero duty for domestic sale with a condition to export a similar quantity of refined sugar within 24 months.

Losses may be capped by lower production, which the government and trade estimates suggest will fall by nearly a third to around 18 million tonnes in 2008/09 from 26.3 million tonnes a year ago.

The benchmark March contract NSMH9 on the National Commodity and Derivatives Exchange ended at 2,141 rupees per 100 kg in the last trading session.