India sugar eases on profit-taking; eyes import duty.

(Reuters) - Indian sugar futures eased on Thursday on profit-taking from their highest level in three and a half months; although a likely drop in next year's production and hopes of higher import duty limited the downside.

* The key July contract on the National Commodity and Derivatives Exchange was down 0.45 percent at 3,116 rupees ($53.94) per 100 kg at 0853 GMT, after rising to 3,150 rupees in the previous session, the highest since Feb. 28.

* "The government may impose duty to discourage imports. Already imports have slowed down due to a weak rupee. Higher duty may halt imports completely," said Prerna Sharma, an analyst at Emkay Commotrade Ltd.

* A weak rupee makes sugar imports expensive. The local currency was trading near its record low level on Thursday.

* Sugar output in top-producing Maharashtra state is likely to fall by 25 percent year-on-year to 6 million tonnes in 2013/14 as drought reduced the acreage under the crop, a state official said.

* Spot sugar eased 3 rupees to 3,076 rupees per 100 kg at the Kolhapur market in Maharashtra state.

* India is likely to produce 24.6 million tonnes of sugar in 2012/13, an industry body has said, against an annual demand of about 23 million tonnes. ($1 = 57.7700 Indian rupees)

Source : in.reuters.com