Sugar futures fell by Rs 24 to Rs 3,318 per quintal today as speculators locked-in gains amid the government's decision to release more sugar in the open market to check the sweetner's price. However, strong demand in the spot markets for the ongoing festive season restricted the fall.
At the National Commodity and Derivatives Exchange, sugar for delivery in August fell by Rs 24, or 0.72%, to Rs 3,318 per quintal, with an open interest of 34,850 lots.
The September contract shed Rs 13, or 0.38%, to Rs 3,380 per quintal, with an open interest of 32,860 lots.
Market analysts said the fall in sugar futures prices was due to profit-booking by speculators at existing higher levels and the government's decision to release 2.9 lakh tonnes of additional sugar in the open market.
However, strong demand in the physical markets from bulk consumers and poor rainfall in cane-growing areas restricted the fall, they said.
Sugar prices that were ruling at Rs 34-35 a kg in the national capital a fortnight ago have now touched Rs 37-38 a kg.