Sugar futures rose by Rs 20 to Rs 3,305 per quintal today after speculators enlarged their positions amid expectations that festivals will increase the demand for the sweetener.
At the National Commodity and Derivatives Exchange, sugar for December delivery traded Rs 20, or 0.61%, higher at Rs 3,305 per quintal, with an open interest of 16,680 lots.
The November contract traded higher by Rs 18, or 0.54%, at Rs 3,360 per quintal, with open interest of 39,060 lots.
Meanwhile, at Mumbai's Vashi wholesale market, medium sugar traded higher at Rs 3,542/3,592 per quintal in yesterday's trade.
Marketmen attributed the rise in sugar futures to fresh positions created by speculators on hopes that retail demand is likely to improve significantly in coming days. Higher non-levy quota for October and November restricted the gains.