Sugar futures decline 0.40% on subdued demand

NEW DELHI: Sugar prices fell by 0.40 per cent to Rs 3,524 per quintal in futures trading today as speculators trimmed positions amid easing demand in the spot market.

Besides, adequate stocks position on improved supplies after the government's measures to check rising prices fuelled the downtrend.

At the National Commodity and Derivatives Exchange, sugar for delivery in July fell by Rs 14, or 0.40 per cent, to Rs 3,524 per quintal, with an open interest of 44,670 lots.

Similarly, the sweetener for delivery in October traded lower by Rs 5, or 0.14 per cent, to Rs 3,673 per quintal in 8,320 lots.

Analysts attributed the fall in sweetener prices at futures trade to easing demand from bulk consumers in the spot market against adequate stocks position on improved supplies.

Meanwhile, with sugar prices rising to Rs 40 per kg level in retail markets, the Maharashtra government has imposed stockholding limits on sugar traders in order to check hoarding and control prices of the sweetener.