MUMBAI, July 24: Indian sugar futures erased early losses and edged up on Thursday on short-covering, after falling 3 per cent in the previous session due to a parliamentary panel report which suggested curbs on agri-commodity futures.

Firm spot prices and market regulator comments to Reuters that there were no plans to curb futures trading in more commodities and bans on four items were likely to be lifted in September helped improve sentiment. See India in May suspended for four months futures trading in soyaoil, rubber, potato and chickpea in an attempt to control rising inflation.

The August contract on the National Commodity and Derivatives Exchange was up 0.89 per cent at 1,594 rupees ($37.8) per 100 kg.

The September contract had risen 0.60 per cent to 1,672 rupees.

Spot prices in Maharashtra edged up 0.1 per cent to 1,585.40 rupees.

The report from a cross-party committee of lawmakers said India should discourage futures trading in agriculture commodities to contain speculative trading.

See It is best to avoid September contract as it has become very volatile after the parliamentary panel report on Wednesday.

The prices in the futures may see more falls, Lopa Sanghvi, an analyst in Anand Rathi Commodities Ltd, said.—Reuters