Sugar prices rose by 1.21 per cent in futures trade on Tuesday, buoyed by pick-up in demand at the spot markets amid tight supplies by millers.
However, prospects of higher production in current season, though, capped the gains.
At the National Commodity and Derivatives Exchange, sugar for delivery in August moved up by Rs 31, or 1.21 per cent, to Rs 2,596 per quintal, with an open interest of 14,230 lots.
Likewise, sugar futures for delivery in July rose by Rs 28, or 1.11 per cent, to Rs 2,553 per quintal, with a business turnover of 24,190 lots.
Analysts attributed the recovery in sugar futures to considerable rise in pick-up in demand from bulk consumers at the spot markets amid restricted supplies by millers.