Sugar futures fall on low demand, higher output hopes

Sugar futures prices fell by 0.18 per cent to Rs 2,841 per quintal today as speculators reduced their positions amid weak trend at the spot markets. 

Besides, expectations that the government may release higher free-sale quota for April also kept pressure on the sweetener's prices at the futures trade.  

At the National Commodity and Derivatives Exchange, sugar for delivery in May fell by Rs 5, or 0.18 per cent, to Rs 2,841 per quintal, with an open interest of 15,156 lots.

Similarly, sugar for delivery in April also lost Rs 2, or 0.07 per cent, to Rs 2,758 per quintal, with a business volume of 7,920 lots.

Analysts attributed the fall in sugar prices to subdued demand in the spot markets, forcing speculators to reduce their positions.

Also, hopes of higher free-sale quota for April put pressure on the sugar futures prices. However, government's decision to allow export of up to 5 lakh tonnes, restricted the losses, they added.