Sugar falls by 0.3% on adequate stocks

Sugar prices were down by 0.31 cent to Rs 3,187 per quintal in futures trading today as participants lightened their positions, triggered by ample stocks at the spot market on higher supplies from mills.

At the National Commodity and Derivatives Exchange, sugar for delivery in far-month May fell by Rs 10, or 0.31% to Rs 3,187 per quintal with an open interest of 56,890 lots.

Similarly, the sweetener for delivery in March contracts traded lower by Rs 8, or 0.26% to Rs 3,071 per quintal in 1,12,190 lots.

Analysts said offloading of positions by traders, driven by adequate stocks position on higher supplies from mills, mainly led to the fall in sugar prices at the futures trade.
 

Moreover, reports of higher output also weighed on sweetener prices, they said.

Meanwhile, sugar production in India rose by 4.54% to 14.25 million tonnes in the first four months of the current marketing year (October to September), buoyed by higher output from key producing states, industry body ISMA said.

The production of the sweetener was 13.63 million tonnes (MT) in the year-ago period.