Sugar falls on weak demand, higher supply

Sugar prices fell by 0.45% to Rs 3,293 per quintal in futures trade today after speculators reduced their exposures following weak demand in the spot markets due to end of festive season amid higher supplies.

However, the government's decision to allocate the open market sale quota for the next four months (December-March) instead of current system of quarterly, capped the losses.

At the National Commodity and Derivatives Exchange, the December contract declined by Rs 15, or 0.45%, to Rs 3,293 per quintal, with an open interest of 32,430 lots.

The January contract fell by similar margin to Rs 3,299 per quintal in an open interest of 15,710 lots.

Marketmen said decline in sugar futures prices was mostly due to weak retail demand and higher supplies in the spot market.