Spot sugar rises as demand up at beginning of month.

Prices of sugar rose in Mumbai and Kolhapur, as demand for the sweetener improved with Stuckists replenishing their inventories at the start of the month. In Maharashtra, prices rose also due to bargain buying after a fall in the last week. In Mumbai and Kolhapur, sugar prices were up 7 rupees per 100 kg from previous close. On the NCDEX, the most active May contract of sugar traded down 0.3% from the previous close. The government had on Apr 5 allowed duty-free import of 500,000 tonne of raw sugar under the tariff rate quota. On the National Commodity and Derivatives Exchange, sugar futures traded in a narrow range. Most active May contract of sugar was down 0.2% from the previous close. In north India, soaring prices are unlikely to sustain due to record high output in Uttar Pradesh.