Sugar up 0.3% amid rise in spot demand

Commodity for delivery in May contracts gained Rs 9, or 0.27%

Sugar prices edged up 0.31% to Rs 3,205 per quintal in futures trade today as traders widened positions amid upsurge in demand in the spot market.

In futures trading at the National Commodity and Derivatives Exchange, sugar for delivery in March month rose by Rs 10, or 0.31%, to Rs 3,205 per quintal with an open interest of 1,07,120 lots.

Similarly, the sweetener for delivery in May contracts gained Rs 9, or 0.27% to Rs 3308 per quintal in 39010 lots.

Marketmen said increasing of positions by participants due to pick up in demand from retailers and bulk consumers in the spot market mainly attributed the rise in sugar prices at futures trade but reports of higher output capped the gains.

Meanwhile, India's sugar production rose 7% to 110.90 lakh tonnes till January 15 in the current marketing year while mills have so far this season received contracts for exporting 9 lakh tonnes of sweetener.

Sugar production in India, the world's second-largest producer and biggest consumer, stood at 103.82 lakh tonnes in the same period of 2014-15 marketing year (October-September).