Sugar rises 0.66% on spot demand

However, higher supply from mills restrict the rise

Sugar prices rose by Rs 16 to Rs 2,425 per quintal in futures trade today as speculators created fresh positions amid pick-up in summer season demand from bulk consumers at spot market.

However, adequate stock position in the physical market on higher supply from mills, restricted the rise.

At the National Commodity and Derivatives Exchange (NCDEX), sugar for delivery in May rose by Rs 16 or 0.66 per cent to Rs 2,425 per quintal, with an open interest of 38,060 lots.

Similarly, sugar for delivery in July traded higher by Rs 15 or 0.60 per cent to Rs 2,505 per quintal, in 16,850 lots.

Analysts attributed the rise in sugar futures to pick-up in summer season demand from bulk consumers, including ice-cream and soft drink makers.

However, ample stocks in the market and higher output reports capped the gains, they said.

Besides, India's sugar production rose by 15 per cent to 26.35 million tonnes so far during the current marketing year.

According to the Indian Sugar Mills Association (ISMA), the output will cross 27 million tonnes in the full 2014-15 marketing year (October-September) as against 24.3 million tonnes in the previous year.