Amid profit-booking by speculators after recent gains and a hike in margin by the authorities, sugar futures today fell by Rs 43 to Rs 3,580 per quintal.
However, strong demand in the spot market for the ongoing festive season, restricted the fall.
At the National Commodity and Derivatives Exchange, sugar for delivery in August traded Rs 43, or 1.19%, lower at Rs 3,580 per quintal, with an open interest of 10,660 lots.
The September contract shed Rs 12, or 0.33%, to Rs 3,595 per quintal, with an open interest of 39,620 lots.
Marketmen said the fall in sugar futures prices was due to profit-booking by speculators at current levels and hike in the minimum initial margin to 10% from 5% by the futures bourses effective today, to check speculative activity in the commodity.
However, strong demand in the physical market from bulk consumers and poor rainfall in cane-growing areas restricted the fall, they said.
Meanwhile, sugar prices are ruling at Rs 38-40 a kg in the national capital.
