Sugar futures prices dipped by Rs 12 to Rs 2,754 per quintal largely on increased arrivals in the spot market amid higher output.
However, summer season demand from bulk consumers limited the losses.
At the National Commodity and Derivatives Exchange, sugar for delivery in June fell by Rs 12, or 0.43% to Rs 2,754 per quintal, with an open interest of 21,820 lots.
The sugar for delivery in May also shed Rs 8, or 0.29% to Rs 2,707 per quintal, with trade volume of 38,730 lots.
Analysts said adequate stocks in the spot markets following higher output estimates, mainly kept pressure on the sugar prices. However, seasonal demand which goes up during summer months capped the losses.