Sugar down 0.6% on profit-booking

Commodity for delivery in July traded lower by 0.54%

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Snapping its rising streak, sugar prices fell by 0.63% to Rs 3,154 per quintal in futures trading today as speculators indulged in booking profits.

At the National Commodity and Derivatives Exchange, sugar for delivery in August fell by Rs 20, or 0.63%, to Rs 3,154 per quintal with an open interest of 26,140 lots.

Similarly, the sweetener for delivery in July traded lower by Rs 17, or 0.54%, to Rs 3,114 per quintal in 31,160 lots.

Analysts attributed the fall in sugar futures to profit-booking by speculators after recent gains.

The government had on Monday decided to hike the import duty on sugar to 40% from 15% and provide an additional interest-free loan of up to Rs 4,400 crore to sugar mills to enable the cash-starved industry pay their huge arrears to sugarcane farmers.

Besides, the export subsidy will be extended till September this year to give relief to the sugar industry, which owes Rs 11,000 crore to cane growers, largely from Uttar Pradesh.