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Sugar prices climbed Rs 35 to Rs 2,740 per quintal in futures trading today as participants indulged in creating speculative positions after the government approved subsidy for exports of raw sugar.
However, sluggish demand from bulk consumers, limited the gains.
At the National Commodity and Derivatives Exchange, sugar for delivery in February traded Rs 35, or 1.29%, higher at Rs 2,740 per quintal with an open interest of 8,000 lots.
Likewise, the sweetener for delivery in March traded Rs 24, or 0.87% higher at Rs 2,773 per quintal in 19,590 lots.
Market analysts attributed the rise in sugar prices at futures to speculative positions created by participants after the government yesterday approved a subsidy of Rs 3,333 per tonne for exports of raw sugar to boost overseas sales and help the cash-starved industry to pay arrears to sugarcane farmers.
They said, however, subdued demand from bulk consumers, limited the gains.
