MUMBAI, March 20 (Reuters) - Indian sugar futures extended losses on Tuesday on rising inventory from ongoing cane crushing, although hopes of an improvement in demand in the physical market due to summer season and firm world market limited the fall.
* The key April sugar contract on the National Commodity and Derivatives Exchange closed down 0.28 percent at 2,803 rupees ($55.6) per 100 kg.
* Prices edged 0.3 percent down to 2,766 rupees per 100 kg in the spot market in Kolhapur in top producing Maharashtra state.
* "Supply pressure is weighing on prices," said Vedika Narvekar, senior analyst with Angel Commodities Broking.
* "At the current level, the market will consolidate and try to edge higher. Temperature has started to rise and demand for sugar should improve in the coming days."
* Demand for the sweetener from ice-cream and beverage makers typically goes up during the summer.
* New York raw sugar futures traded at a three-week high early on Tuesday, bolstered by concerns over the outlook for new crop centre-south Brazilian output.
* Indian sugar mills produced 21.2 million tonnes of the sweetener between Oct. 1 and March 15, up 14 percent from a year earlier, a trade body said on March 19.
* India is estimated to produce 26 million tonnes of sugar in 2011/12, higher than the annual demand of about 22 million tonnes.
$1= 50.4 Indian rupees Reporting by Rajendra Jadhav; Editing by Rajesh Pandathil