Sugar prices rose by 0.80% in futures trade today as speculators enlarged positions after the government allowed export of additional five lakh tonnes of sugar amid pick-up in demand at spot markets.
At the National Commodity and Derivatives Exchange, sugar for July delivery rose by Rs 21, or 0.80%, to Rs 2,640 per quintal, with an open interest for 31,240 lots.
Likewise, sugar for delivery in August showed strength and gained Rs 18, or 0.68%, to Rs 2,679 per quintal, with an open interest of 18,280 lots.
Analysts attributed the rise in sugar futures to government's decision to allow export of additional five lakh tonnes of sugar under the Open General License (OGL), on hopes of higher output exceeding demand this year.
In addition, pick-up in demand from bulk consumers at the spot markets also supported the rise in prices of sweetener.
In April, the government had allowed 5,00,000 tonne of sugar exports under OGL, which enables shipment without any restrictions.