Amid weak spot demand and higher free-sale quota, sugar futures prices fell 0.25 per cent to Rs 2,819 per quintal today.
At the National Commodity and Derivatives Exchange, June contract fell by Rs 7 or 0.25 per cent to Rs 2,819 per quintal with an open interest of 5,100 lots. Similarly, April contract also shed Rs 3 or 0.11 per cent to Rs 2,684 per quintal with a business volume of 37,130 lots.
Analysts attributed the fall in sugar prices to subdued demand from bulk consumers in the spot markets. Additionally, higher free-sale quota for April released by the Government also put pressure on the futures prices.
The Government has allocated 19.07 lakh tonnes of sugar for sale in the open market and through ration shops during this month, marginally higher than last month’s 18.86 lakh tonnes.