Sugar futures today fell by Rs 21 to Rs 3,459 per quintal as speculators trimmed positions on increased supplies in the physical market following the government's measures to check the sweetener's price.
Besides, fall in demand in the spot markets at current prices weighed on the commodity.
At the National Commodity and Derivatives Exchange, sugar for delivery in September traded lower by Rs 21, or 0.60%, to Rs 3,459 per quintal, with an open interest of 42,940 lots.
August sugar shed Rs 15, or 0.42%, to Rs 3,521 per quintal, with an open interest of 860 lots.
Marketmen said the fall in sugar futures was due to the government's decision to release 4.2 lakh tonne (LT) sugar in the open market this month to control prices.
In addition, slackened demand in the spot markets at prevailing levels weighed on the prices, they said.
Meanwhile, sugar prices in the Kolhapur spot market in Maharashtra fell by Rs 20 to Rs 3,531 per quintal in yesterday's trade.