Nov. 3 (Bloomberg) -- Sugar futures gained on signs of increasing demand in India, the world’s largest consumer. Orange juice also climbed.

Prices in Kolhapur, a major sugar-cane growing area in India, surged 6 percent today to the highest level since at least August 2007. New York futures have more than doubled this year, including a 9.3 percent rally in the past four sessions, as adverse weather hampered harvests in Brazil and India, the biggest producers.

“The rally in internal India prices is pushing this market,” said Michael McDougall, a senior vice president at Newedge USA LLC. in New York. “India is running low on sugar. They’re taking some additional imports.”

Sugar futures for March delivery rose 0.53 cent, or 2.3 percent, to 23.97 cents a pound on ICE Futures U.S. in New York. Earlier, the price reached 24 cents, the highest level for a most-active contract since Oct. 21.

Demand from countries including Pakistan, Indonesia and Bangladesh is also supporting prices.

The Indian government’s plan to set a uniform price for cane crops nationwide is leading to protests from farmers. That “could slow down cane-processing in mills” and squeeze supplies, McDougall said.

“The market looks primed to test 24 cents and make another run for the highs,” he said. Sugar reached a 28-year high of 25.43 cents on Sept. 30.

Orange-juice futures for January delivery rose 0.65 cent, or 0.6 percent, to $1.1195 a pound in New York. The price has gained 65 percent in 2009 on signs that output will drop in Florida, the largest citrus grower behind Brazil.

To contact the reporter on this story: Yi Tian in New York at ytian8@bloomberg.net.

Last Updated: November 3, 2009 14:58 EST