Sugar futures today fell by Rs 27 to Rs 3,444 per quintal as speculators trimmed positions after the government decided to release additional quota in the open market to check the sweetener's price.
However, strong demand in the spot market from bulk consumers for the ongoing festive season restricted the fall.
At the National Commodity and Derivatives Exchange, sugar for delivery in September traded lower by Rs 27, or 0.78%, to Rs 3,444 per quintal, with an open interest of 43,620 lots.
August sugar shed Rs 12, or 0.35%, to Rs 3,440 per quintal, with an open interest of 6,580 lots.
Marketmen said fall in sugar futures prices was due to the government's decision to release 4.2 lakh tonne (LT) sugar in the open market this month to control its prices.
Sugar prices have risen by nearly 15 to 20% in the last one month in most parts of the country.
In addition, reports that the government is considering imposing restrictions on sugar exports influenced the prices, they said.
Meanwhile, sugar prices were ruling at year's high of Rs 40-42 a kg in the national capital.
