Sugar up on spot demand

Buoyed by rising demand from bulk consumers and government's decision to allow unrestricted exports, Sugar futures prices rose by 0.28% to Rs 2,898 per quintal today.

At the National Commodity and Derivatives Exchange, sugar for May delivery traded Rs 8, or 0.28%, higher at Rs 2,898 per quintal, with an open interest for 51,950 lots.

Sugar for delivery in June also showed strength and gained Rs 4, or 0.14%, to Rs 2,928 per quintal, with an open interest of 27,500 lots.

Analysts attributed the rise in sugar futures to speculators creating positions in line with a firming trend at spot markets. Demand in the physical markets shot up from bulk consumers after government's decision to allow unrestricted exports of the sweetener.