Sugar extended gains for the fourth straight day in futures trade today and gathered 1.48 per cent on the back of increased summer-season demand from bulk consumers in the spot market.
The downward revision in the output estimates of the sugar industry also supported the rise in sweetener’s price.
Sugar for delivery in April rose 1.48 per cent to Rs 2,202 per quintal, with a turnover of 17,540 lots, on the National Commodity and Derivatives Exchange.
The May contract for the sweetener gained 1.23 per cent at Rs 2,301 per quintal with a turnover of 18,710 lots, while the far-month June contract moved up by 1.19 per cent to Rs 2,390 per quintal, with a turnover of 4,870 lots.
Market analysts attributed the persistent rise in sugar prices to the pick-up in summer-season demand from bulk consumers, like ice-cream and cold-drinks makers, in the physical market and reports of a downward revision in output estimates by the sugar industry.
The sugar industry had projected production to fall to 14.2 million tonnes this season, down 8.4 per cent from previous estimates.
