Sugar seen down as government imposes stock limit

India sugar futures may fall on Tuesday following the government's decision to impose stock limits, analysts said.
India will impose limits on the amount of sugar that can be stocked and may raise the price millers have to pay farmers for cane by up to 50 percent, in order to tame prices and help lift sugar production out of this year's expected slump.
After a meeting of the federal Cabinet, Home Minister Palaniappan Chidambaram said the formal notification detailing th regulations, which would initially apply for four months, will most likely be released on Tuesday.
The April contract NSMJ9 on the National Commodity and Derivatives Exchange ended down 0.31 percent at 2,229 rupees per 100 kg on Saturday. The market was closed on Monday on account of a holiday.
Government and trade estimates suggest India's output will fall by nearly one-third to around 18 million tonnes in 2008/09 from 26.3 million tonnes a year ago.