Sugar futures rise 0.37 pc on lower output, rising demand

NEW DELHI: Sugar prices rose by 0.37 per cent to Rs 3,218 per quintal in futures trade today as speculators enlarged positions, triggered by a fall in output.

Also, rising demand from bulk consumers supported the upside.

At the National Commodity and Derivatives Exchange, sugar for delivery in April rose by Rs 12, or 0.37 per cent, to Rs 3,218 per quintal with an open interest of 26,870 lots.

The sweetener for delivery in May also traded higher by Rs 10, or 0.31 per cent, to Rs 3,245 per quintal in 48,340 lots.

Market analysts said speculative positions created by participants after country's sugar production dipped seven per cent till March this year, influenced the sweetener prices at futures trade here.

Besides, increased demand from bulk consumers such as soft-drink and ice-cream makers, also influenced sugar prices, they said.

Meanwhile, the country's sugar production has dropped by 7 per cent to 21.5 million tonnes in the first six months of the current marketing year due to lower output in key producing states, according to industry body ISMA.