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Sugar prices firmed up by 1.27% to Rs 2,558 per quintal in futures trade today as speculators enlarged positions amid rising demand from bulk consumers in the spot market.
However, reports of higher output this marketing year restricted the rise.
At the National Commodity and Derivatives Exchange, sugar for delivery in July month was trading higher by Rs 32, or 1.27% to Rs 2,558 per quintal with an open interest of 10,370 lots.
Likewise, the sweetner for delivery in May contracts was up by Rs 29, or 1.18% to Rs 2,490 per quintal in 37,100 lots.
Analysts said speculators enlarged positions on the back of rising demand from bulk consumers following beginning of summer season mainly led to the rise in sugar prices but higher output restricted gains.
Meanwhile, India's sugar production went up 13% to 24.72 million tonnes in the first six months of this marketing year ending September.
The marketing year for the commodity runs from October to September.
