Sugar up 2% in trade

Commodity for delivery in March traded higher by 0.61%

Sugar prices climbed Rs 56, or 2%, to Rs 2,850 per quintal in futures trading today as participants engaged in creating speculative positions as output fell over 13% so far this year.

At the National Commodity and Derivatives Exchange, sugar for delivery in February traded higher by Rs 56, or 2%, at Rs 2,850 per quintal with an open interest of 3,520 lots.

Likewise, the sweetener for delivery in March traded higher by Rs 17, or 0.61%, at Rs 2,822 per quintal in 20,050 lots.

Market analysts attributed a significant rise in sugar prices at futures trade to speculative positions created by participants after country's sugar output fell over 13% to 14.37 million tonnes so far this year on delayed crushing.

Meanwhile, the government had earlier this month approved a subsidy of Rs 3,333 per tonne for exports of raw sugar to boost overseas sales and help the cash-starved industry to pay arrears to sugarcane farmers.