Continuing its upward journey, sugar prices rose further by 0.38% to Rs 3,174 per quintal in futures trade today as speculators indulged in creating positions, supported by strong spot demand and deficient rains in key growing regions.
Further, release of lower-than-expected free-sale quota for the July-September quarter by the government also influenced the sugar prices.
At the National Commodity and Derivatives Exchange, sugar for September traded Rs 12, or 0.38%, higher at Rs 3,174 per quintal, with an open interest for 14,820 lots.
Sugar for delivery in August also traded Rs 8, or 0.26%, higher at Rs 3,115 per quintal, with an open interest of 30,850 lots.
Market analysts said the persistent rise in sugar futures was mostly driven by firm demand from bulk consumers in the spot market and weak monsoon in key growing areas.
Besides, a lower than-expected non-levy sugar quota of 4.5 million tonnes for the July-September quarter released by the government also supported the upside in the sweetener prices, they said.
