Sugar futures traded a shade higher at Rs 2,808 per quintal speculators created fresh positions, triggered by a pick up in demand in spot markets.
However, ample supplies from mills in the physical market restricted the gains.
At the National Commodity and Derivatives Exchange, sugar for delivery in January rose by Rs 5, or 0.18%, to Rs 2,808 per quintal with an open interest of 24,360 lots.
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Analysts said rising demand in the spot markets mainly supported the upside in sugar prices at futures trade.