Sugar up 0.3% on lower output, rising demand

Sugar prices rose by 0.37% to Rs 3,218 per quintal in futures trade today as speculators enlarged positions, triggered by a fall in output.

Also, rising demand from bulk consumers supported the upside.

At the National Commodity and Derivatives Exchange, sugar for delivery in April rose by Rs 12, or 0.37%, to Rs 3,218 per quintal with an open interest of 26,870 lots.

The sweetener for delivery in May also traded higher by Rs 10, or 0.31%, to Rs 3,245 per quintal in 48,340 lots.

Market analysts said speculative positions created by participants after country's sugar production dipped 7% till March this year, influenced the sweetener prices at futures trade here.

Besides, increased demand from bulk consumers such as soft-drink and ice-cream makers, also influenced sugar prices, they said.

Meanwhile, 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, according to industry body ISMA.