Supported by a firming trend in the spot markets on rising demand from bulk consumers, sugar futures prices rose by 0.51% to Rs 2,928 per quintal today.
However, supply pressure from millers in the spot markets limited the gains.
At the National Commodity and Derivatives Exchange, sugar for July delivery traded Rs 15, or 0.51%, higher at Rs 2,928 per quintal, with an open interest for 23,540 lots.
Sugar for delivery in August also showed strength and rose by similar margin to Rs 2,955 per quintal, with an open interest of 15,580 lots.
Meanwhile, sugar rose by 0.35% to Rs 2,865 in the key spot market in Kolhapur, Maharashtra in previous day's trading.
Analysts attributed the rise in sugar futures to fresh positions created by speculators, buoyed by a firming trend in spot markets on the back of pick up in demand from bulk consumers, such as soft drink makers.
Besides, poor rains in top sugar producing Maharashtra raising concerns about production in the next season beginning October, also influenced sugar futures prices here, they said.