Sugar prices tumbled Rs 70 to Rs 3,425 per quintal in futures trade today as speculators preferred to trim their positions after the government imposed stock limits on sugar mills during the festival season till October-end.
At the National Commodity and Derivatives Exchange, sugar for delivery in far-month December contracts was trading sharply lower by Rs 70, or 2% to Rs 3,425 per quintal having a business volume of 13,970 lots.
Sweetener for delivery in October also slumped by Rs 55, or 1.58% down at Rs 3,405 per quintal in business volume of 1,600 lots.
Analysts attributed weakness in sweetener prices at futures trade offloading of positions by speculators after the government yesterday imposed stock limits on sugar mills.
To check spiraling price of sugar which has crossed Rs 40 per kg, the government today imposed stock limits on sugar mills during the festival season till October-end.
The decision to impose stock limit on millers would boost availability of sugar in the open market and help in controlling the price rise.