Sugar up 0.2% on strong demand, lower output

Commodity for delivery in May moved up by 0.09%

Extending its rising streak, sugar prices rose by 0.28% to Rs 3,200 per quintal in futures market today as speculators engaged in enlarging positions, driven by summer season demand from bulk consumers amid fall in production.

At the National Commodity and Derivatives Exchange, sugar for delivery in April gained Rs 9, or 0.28%, to Rs 3,200 per quintal with an open interest of 10,990 lots.

On similar lines, the sweetener for delivery in May moved up by Rs 3, or 0.09%, to Rs 3,241 per quintal in 55,260 lots.

Analysts said apart from rising demand in the spot markets from bulk consumers following summer season demand, fall in sugar production supported the continued rise in sweetener prices at futures trade.

The country's sugar production has dropped by 7% to 21.5 million tonnes in the first six months of the current marketing year due to lower output in key producing states.