Sugar futures fell by 0.37% to Rs 2,721 per quintal today as speculators reduced their position on off-loading of positions by speculators amid hopes of a marginal rise in its output this crushing season.
However, rise in spot demand due to the ongoing festivals limited the losses.
At the National Commodity and Derivatives Exchange, October sugar dropped by Rs 10, or 0.37%, to Rs 2,721 per quintal, with an open interest of 16,590 lots.
The November delivery fell by Rs 5, or 0.18%, to Rs 2,708 per quintal, with an open interest of 4,710 lots.
Analysts said the sugar futures prices fell after speculators reduced their positions amid higher output this season, but rise in demand for the sweetener on account of the festive season capped the losses.
In addition, allocation of higher sugar quota for October also had some pressure on the sugar prices, they said.
Meanwhile, the government has decided to make available 19.97 lakh tonnes of sugar for the month of October this year. The sugar release includes 2.47 lakh tonnes of levy sugar and 17.50 lakh tonnes of non-levy (free sale) sugar.
