Sugar falls on sluggish demand

Sugar prices declined by 0.46 per cent to Rs 3,213 per quintal in futures trade today, as speculators reduced their positions.

On the Multi Commodity Exchange (MCX) counter, sugar for delivery in March contract shed Rs 15, or 0.46 per cent, to Rs 3,213 per quintal, with a business turnover of single lot.

The fall is driven by subdued demand at spot markets, amid pick up in cane crushing at key producing states.

Similarly, the delivery for February contract also showed weakness and traded Rs 4.00, or 0.13 per cent lower at Rs 3,158 per quintal, with a business turnover of four lots.

While delivery for January-contract moved down by Rs 2, or 0.04 per cent to Rs 3,107 per quintal, and clocked a business turnover of two lots.

Analysts said sluggish demand from bulk consumers at spot markets and reports that cane crushing picked up in key producing states, weighed on the sugar futures prices.