Amid profit-booking at higher levels by speculators and higher supplies, sugar futures prices today fell by Rs 8 to Rs 3,308 per quintal.
However, strong festive season demand capped the losses.
At the National Commodity and Derivatives Exchange, sugar for delivery in December traded lower by Rs 8, or 0.24%, to Rs 3,308 per quintal, with an open interest of 16,230 lots.
The sweetener for delivery in November shed Rs 7, or 0.21%, to Rs 3,344 per quintal, in a turnover of 32,640 lots.
At Mumbai's Vashi wholesale market, medium sugar (M-30) traded Rs 10 higher at Rs 3,582/3,711 per quintal yesterday on festive season demand.
Marketmen said fall in sugar futures prices was due to profit-booking by speculators and increased supplies in spot market.
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The government has allowed millers to sell 4 million tonne of non-levy sugar in October and November, higher than the average monthly allocation of around 1.7 million tonne.
Non-levy, or free-sale, sugar is sold by millers in the open market, but the quantity each mill can sell is fixed by the government.