Sugar prices declined by Rs 42 to Rs 2,860 per quintal in futures trade today due to slack demand in the spot market amid increased supply.
At the National Commodity and Derivatives Exchange, December sugar fell by Rs 42, or 1.45%. The January delivery fell by Rs 17, or 0.59%, to Rs 2,885 per quintal, with an open interest for 26,520 lots.
Analysts attributed the fall in sugar futures prices to a weak trend in the spot market amid a considerable fall in demand.
In addition, rising supplies from millers even at lower prices in view of a liquidity crunch— as they have to make payments to buy cane in the ongoing crushing season— weighed on the sweetener's prices in futures trade.