Sugar prices dropped by 3.42 per cent to Rs 2,400 per quintal in futures trading today as speculators reduced their positions, driven by huge stocks at spot markets on higher supplies from mills.
Besides, output reports this marketing season further weighed on the sweetener's prices.
At the National Commodity and Derivatives Exchange, sugar for delivery in March month plunged by Rs 85, or 3.42 per cent, to Rs 2,400 per quintal with open interest of 11,600 lots.
Analysts attributed the fall in sugar prices to ample stocks in the physical market due to persistent supplies from mills against low demand from bulk consumers.
