Ample stocks drags down sugar futures by 0.52%

Sugar prices fell by 0.52 per cent to Rs 3,038 per quintal in futures trading today as traders reduced exposure, driven by adequate stocks at the spot market on higher supplies from mills.
At the National Commodity and Derivatives Exchange, sugar for delivery in March month fell by Rs 16, or 0.52 per cent to Rs 3,038 per quintal with an open interest of 88,240 lots.
Similarly, the sweetener for delivery in May contracts traded lower by Rs 13, or 0.42 per cent to Rs 3,117 per quintal in 20,840 lots.
Market analysts said offloading of positions by participants triggered by higher supplies from mills, mainly kept pressure on sugar prices at futures trade.

Besides, reports of higher output also weighed on prices, they said.
Meanwhile, the country's sugar production rose by 13.2 per cent to 47.86 lakh tonnes till December 15 in the current marketing year on higher output from Maharashtra and Karnataka.
Sugar production in India, the world's second largest producer and biggest consumer, stood at 42.