Gur (jaggery) futures gained marginally on the National Commodities and Derivatives Exchange (NCDEX) on Friday in sympathy with rise in sugar prices.

Sugar prices have been on the rise since the start of July after the Centre came up with the open market free sale quota that the trade considered as inadequate to meet the festival demand.

Every quarter, the Centre decides on the sugar quantity that each sugar mill can sell in the open market. This quota is then sold over three months.

Sugar prices regained the record price of Rs 3,600 a quintal this week.

With sugar in demand, traders expect a short supply in gur. A lower sugarcane crop projected for the next season starting November could also make supply tight for gur units.

September contracts increased marginally to Rs 1,255 for 40 kg on the NCDEX during noon, while November contracts rose by Rs 11 to Rs 1,198. December futures were quoted at Rs 1,160.50 a quintal.

In the spot market, prices were range-bound and deals were scattered. In the Muzzarfarnagar spot market, gur was quoted lower at Rs 1,172.90 against Rs 1,177.50 on Thursday.

(This article was published on August 3, 2012)
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