Sugar futures up 0.63%

Sugar futures prices rose 0.63 per cent to Rs 3,026 per quintal as speculators enlarged positions on hopes that export of the sweetener may be allowed.

At the National Commodity and Derivatives Exchange, the sugar for delivery in May traded up by Rs 19, or 0.63 per cent, to Rs 3,026 per quintal, with a business turnover of 1,320 lots.

The sugar for March contract also gained Rs 9, or 0.32 per cent, to Rs 2,838 per quintal, with an open interest of 29,040 lots.

Analysts said the recovery in sugar futures prices was mostly attributed to speculation that the government may allow export of the sweetener but higher supplies in the market and slackened demand in the spot markets, restricted the gains.

Meanwhile, sugar output is pegged at 24.5 million tonnes in 2010—11 (October—September), against 19 million tonnes in the previous year. The annual demand is seen at 22 million tonnes and India has an opening stock of 5 million tonnes.