Sugar sheds 0.73% on sluggish demand, higher supply

Traders pare positions on higher supplies; likely drop in output limits losses

Sugar prices drifted by 0.73 per cent to Rs 3,008 per quintal in futures trade today as speculators reduced positions due to sluggish demand in the spot market against higher supplies.

However, a likely drop in output restricted the losses.

At the National Commodity and Derivatives Exchange, sugar for delivery in June fell by Rs 22, or 0.73 per cent to Rs 3,008 per quintal with an open interest of 51,510 lots.

The July contract shed Rs 21, or 0.69 per cent to Rs 3,011 per quintal in 23,570 lots.

Analysts said besides subdued spot demand, large supplies from millers, put pressure on sugar prices at futures trade here.