Sugar futures prices today rose by 0.65% to Rs 3,429 per quintal on the back of strong demand from bulk consumers in spot market even as the government released more sugar in the open market.
At the National Commodity and Derivatives Exchange, sugar for delivery in September traded Rs 22, or 0.65%, higher at Rs 3,429 per quintal, with an open interest for 35,100 lots.
August sugar traded Rs 17, or 0.50%, higher at Rs 3,387 per quintal, with an open interest of 24,160 lots.
Analysts attributed the rise in sugar futures to strong demand in the physical markets, driven by the festive season.
Even the government's decision to release 2.9 lakh tonnes of sugar in the open market failed to check the persistent rise in sugar prices.
Deficient monsoon in almost all key sugar producing regions, which could hurt output next year, supported the upside in prices, they said.
