Expectations of higher output also put pressure on sugar prices.
At the National Commodity and Derivatives Exchange, sugar for delivery in May fell by Rs 44, or 1.56 per cent to Rs 2,774 per quintal with an open interest of 25,550 lots.
Similarly, the sweetener for delivery in March contracts traded lower by Rs 41, or 1.51 per cent to Rs 2,671 per quintal in 23,380 lots.
Marketmen attributed the fall in sugar futures to adequate stocks position on increased supplies from millers against low demand from bulk consumers.