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Sugar prices rose 0.35% to Rs 3,160 per quintal in futures trade today as speculators enlarged positions, supported by summer season demand against tight supplies in the spot markets from millers.
Besides, a slew of measures announced by the government last week to bail out the cash-strapped mills, supported the upside.
At the National Commodity and Derivatives Exchange, sugar for delivery in August rose by Rs 11, or 0.35%, to Rs 3,160 per quintal with an open interest of 25,770 lots.
Likewise, the sweetener for delivery in July gained Rs 9, or 0.29%, to Rs 3,121 per quintal in 28,980 lots.
Analysts said the rise in the sweetener's prices was mostly due to summer season demand from bulk consumers against tight supplies by millers in the spot markets amidst a slew of measures announced by the government for cash-strapped mills.
Meanwhile, the government last week raised import duty to 40% from 15% besides additional interest-free loan of Rs 4,400 crore for sugar mills.
