Sugar futures up as govt partially decontrols sector

Sugar futures prices today rose sharply by Rs 31 to trade higher at Rs 3,039 per quintal as speculators enlarged their positions after the government partially decontrolled the sugar sector.

However, ample supplies in the market, capped the gains.

At the National Commodity and Derivatives Exchange, sugar for delivery in May traded Rs 31, or 1%, higher at Rs 3,039 per quintal, with an open interest of 38,330 lots.

The sweetener for delivery in April also gained Rs 17, or 0.58% to Rs 2,963 per quintal after rising to Rs 2,970 in an open interest of 14,300 lots.

Marketmen attributed rally in sugar prices at futures trade speculative positions created buy participants as the government partially decontrolled the sugar sector.

In a major reform, the government yesterday partially decontrolled the Rs 80,000-crore sugar sector by giving freedom to millers to sell in the open market and removed their obligation to supply the sweetener at subsidised rates to ration shops.