MUMBAI, March 23 (Reuters) - Indian sugar futures are likely to open higher on Monday on bargain hunting driven by hopes summer-season demand may pick up in coming weeks and on lower output estimates, analysts said.
But higher supplies in the spot market due to stock limits and renewed market talk the government may allow duty-free white sugar imports for domestic use may limit the gains, they added.
The speculation has persisted despite doubts the independent Election Commission would not allow the government to make policy changes that can be seen as trying to influence voters.
Before the polls were called, the government had last month allowed duty-free imports of raw sugar for domestic consumption.
The April contract NSMJ9 on the National Commodity and Derivatives Exchange ended at 2,033 rupees per 100 kg in the previous trading session.
India is expected to produce 15.7 million tonnes of sugar in the crop year to September as cane shortages mount, Shanti Lal Jain, director general of the Indian Sugar Mills Association, told the Reuters Food and Agriculture Summit.
Source : REUTERS INDIA