Sugar up 1.29% on Rangarajan committee recommendations

Sugar futures prices today surged 1.29% to Rs 3,434 per quintal as speculators enlarged their positions after the Rangarajan Committee suggested de-control of the sector.

Besides, strong demand in the spot markets for the festive season too influenced sugar prices.

At the National Commodity and Derivatives Exchange, the October contract for sugar spurted by Rs 44, or 1.29%, to Rs 3,434 per quintal, with an open interest of 3,280 lots.

The November contract gained Rs 11, or 0.33% to Rs 3,370 per quintal in 33,920 lots.

Market analysts attributed the rise in sugar prices at futures trade to the Rangarajan Committee's recommendation de-control of the sugar sector by giving freedom to mills to sell their produce in open market and removing the obligation on the industry to supply the sweetener at below market price for ration shops.

Further, strong demand in the market for the festive and marriage season, also gave push to rising sweetener's prices at futures trade, they said.