Sugar down by 0.6% on adequate stocks

Sugar prices declined by 0.64% to Rs 3,270 per quintal in futures market today as participants trimmed their positions, triggered by ample stocks at the spot market on higher supplies from mills.

At the National Commodity and Derivatives Exchange, sugar for delivery in May month fell by Rs 21, or 0.64% to Rs 3,270 per quintal with an open interest of 41,990 lots.

Likewise, the sweetener for delivery in March contracts eased by Rs 20, or 0.63% to Rs 3,156 per quintal in 1,03,940 lots.

Analysts said offloading of positions by traders driven by sufficient stocks on higher supplies from mills,mainly led to the fall in sugar prices at the futures trade.
 
They said reports of higher output also put pressure on sugar prices.

Meanwhile, India's sugar production rose 7% to 110.90 lakh tonnes till January 15 in the current marketing year while mills have so far this season received contracts for exporting 9 lakh tonnes of sweetener.

Sugar production in India, the world's second-largest producer and biggest consumer, stood at 103.82 lakh tonnes in the same period of 2014-15 marketing year (October-September).