Sugar up as govt allows additional exports

Sugar futures traded Rs 14 higher at Rs 2,834 per quintal today on the National Commodity and Derivatives Exchange (NCDEX), as speculators created positions after the government allowed further one million tonne of its export.

At the NCDEX, the April contract for sugar rose by Rs 14, or 0.50%, to Rs 2,834 per quintal, with an open interest of 40,200 lots.

The May contract also edged higher by Rs 8, or 0.28% to Rs 2,876 per quintal, with an open interest of 32,570 lots.

Analysts said the rise in sugar prices at futures trade was mostly attributed to government's decision to allow additional 1 million tonne of its exports in view of surplus production and to help mills clear mounting cane arrears, that have reached Rs.8,409 crore till February, to farmers.