Sugar up 2% on rising spot demand

Commodity for delivery in December was up by Rs 56, or 2.35%

Sugar firmed up by 2.53% to Rs 2,387 per quintal in futures trade today as speculators enlarged positions amid report that the government is considering a proposal to allow export of 4 million tonnes of sugar through barter trade, and pickup in spot demand.

At the National Commodity and Derivatives Exchange, sugar for delivery in October was trading higher by Rs 59, or 2.53 per cent to Rs 2,387 per quintal with an open interest of 47,200 lots.

Likewise, the sweetener for delivery in December was up by Rs 56, or 2.35 per cent to Rs 2,440 per quintal in 23,000 lots.

Analysts said speculators enlarged bets following reports that the government is considering a proposal to allow export of 4 million tonnes of sugar through barter trade to help mills offload surplus stock and clear cane arrears of over Rs 14,000 crore, influencing sweetener prices.