Sugar prices declined by 0.70% to Rs 2,991 per quintal in futures trade today, as speculators booked profits, even as the government allowed exports of 1 million tonnes.
However, the government's decision to allow exports of 1 million tonnes and good demand from bulk consumers in the spot market, capped the losses.
At the National Commodity and Derivatives Exchange, December sugar fell by Rs 21, or 0.70%, to Rs 2,991 per quintal, with an open interest for 37,720 lots.
The January contract fell by Rs 10, or 0.33% to Rs 3,000 per quintal, with an open interest for 12,380 lots.
Analysts said the fall in sugar futures prices was mostly attributed to profit-booking by speculators after recent gains, but government's decision allowing exports of 1 million tonnes and strong demand for the sweetener in the spot market from bulk consumers for the marriage season, restricted the losses.
Meanwhile, in Kolhapur spot market in the country's top producing state Maharashtra, sugar jumped 3.4% to Rs 3,050 per quintal yesterday.
