Sugar extends gains on spot demand

May, July contracts add 0.72% and 0.97% respectively, on higher summer season offtake from bulk consumers and retailers

Sugar prices rose by Rs 25 to Rs 2,600 per quintal in futures market today amid summer season demand from bulk consumers and retailers at spot market.

At the National Commodity and Derivatives Exchange, sugar for delivery in July was trading higher by Rs 25, or 0.97 per cent, at Rs 2,600 per quintal with an open interest of 11,640 lots.

The May contract added Rs 18, or 0.72 per cent, to Rs 2,510 per quintal in 40,200 lots.

Analysts said persistent rise in sugar prices at futures trade was mostly driven by pick-up in summer season demand from bulk consumers, including ice-cream makers, but ample stocks in the market and higher output reports, capped the gains.

Meanwhile, India's sugar production went up by 13 per cent to 24.72 million tonnes in the first six months of the current marketing year, ending September.