Sugar futures up by 0.5% on govt's plans to hike import duty

Sugar prices for delivery in July moved up by 0.25%

Sugar futures prices today rose by Rs 17 to Rs 3,085 per quintal as speculators enlarged positions following the government plans to increase import duty to 15%, amid rising spot demand.

At the National Commodity and Derivatives Exchange, sugar prices for delivery in August traded Rs 17, or 0.55%, to Rs 3,085 per quintal, with an open interest of 32,470 lots.

Similarly, sugar prices for delivery in July moved up by Rs 8, or 0.25% to Rs 3,014 per quintal in 5,880 lots.

Market analysts said the sugar futures prices were mainly buoyed by reports of government planning to increase import duty to 15% from the current 10% on the sweetener in order to curb shipments and clear sugarcane arrears to farmers estimated at about Rs 9,000 crore.

Besides, increased demand in the spot markets from bulk consumers also influenced prices, they said.