Sugar prices declined by 0.27% to Rs 2,957 per quintal in futures trade today as speculators booked profits, but the losses were restricted following the government's recent move to allow exports of 1 million tonne of the sweetener.
In addition, a weak trend in the spot market due to sluggish demand from bulk consumers at prevailing prices put pressure on sugar prices.
At the National Commodity and Derivatives Exchange, sugar for delivery in January fell by Rs 8, or 0.27%, to Rs 2,957 per quintal, with an open interest for 18,570 lots.
In a similar fashion, sugar for delivery in December fell by Rs 4, or 0.13%, to Rs 3,006 per quintal, with an open interest for 51,300 lots.
Analysts attributed the fall in sugar futures prices to profit-booking by speculators after recent gains, but the government's recent decision allowing exports of 1 million tonne restricted the losses.
