Following an uptrend in the sugar counter, gur (jaggery) futures posted a marginal increase on the National Commodities and Derivatives Exchange (NCDEX) on Monday.
Festival season demand from retailers and stockists coupled with fears of tight supply on account of a lower cane crop projected for the next season are fuelling the uptrend in prices, analysts felt.
September contracts were up by Rs 6 at Rs 1,153 for 40 kg on the NCDEX. November gained Rs 18 to Rs 1,209, while the December series gained Rs 15 to Rs 1,167.
Deficient rainfall, lower production and depleting carryover stocks in the market are pushing up prices during the ongoing lean season. Until new arrivals begin, prices are likely to remain firm. Due to drought conditions in Karnataka and Maharashtra, traders are expecting a minimum 45-60-day delay in new jaggery arrivals.
As such, traders of Orissa, Bihar and Jharkhand are paying more prices for existing stocks, which are very low in quantity.
In the Muzzarfarnagar spot market, gur was quoted at Rs 1,131.6.