Sugar falls by 1.5% on higher supply

Ample stocks in the spot markets on persistent supplies by mills affected prices

Sugar prices dropped by 1.46% to Rs 2,835 per quintal in futures trade today, dragged down by ample stocks in the spot markets on persistent supplies by mills against subdued demand from bull consumers.

At the National Commodity and Derivatives Exchange, sugar for delivery in far-month May dropped by Rs 42, or 0.42% to Rs 2,835 per quintal with an open interest of 3,610 lots.

Similarly, the sweetner for delivery in March contract moved down by Rs 36, or 1.30% to Rs 2,731 per quintal in 17,800 lots.

Market analysts attributed the fall in sugar futures to adequate stocks in the physical market on persistent supplies from millers on higher output reports against low demand from bulk consumers.

Meanwhile, India's sugar production rose by 56% to 17.81 lakh tonnes in the first two months of the current marketing year that started in October, on account of increased production from Uttar Pradesh according to industry data.