Sugar prices fell by 0.20 per cent in futures trade on Thursday, dragged down by weak demand from bulk consumers but tight supplies by millers capped the losses.
On the National Commodity and Derivatives Exchange, sugar for delivery in July fell by Rs 5, or 0.20 per cent, to Rs 2,517 per quintal, with an open interest of 17,640 lots.
Similarly, sugar for delivery in June shed Rupee one, or 0.04 per cent, to Rs 2,443 per quintal, with a business volume of 16,520 lots. It had ended 0.24 per cent lower at Rs 2,444 per quintal in Wednesday’s trade.
Meanwhile, in Kolhapur, a key market in top producer Maharashtra, the most traded S-variety remained flat at Rs 2,471 per quintal in Wednesday’s trade.
Analysts said the fall in sugar futures prices was due to a weak demand from bulk consumers. However, the fall in supplies limited the losses.