MUMBAI (Commodity Online): Sugar futures declined Friday due to sluggish demand in the domestic markets amid ample supply from the fresh crop.

In NCDEX sugar January contract is trading at Rs.2789 per quintal, fell by 1.41 per cent on 16:15 IST against the previous close.

In the morning session the contract traded at a range of Rs.2789-2817 per quintal. Open interest of the contract is 37400 lots and volume traded is 13600 lots for the time being.

Sugar recovery in Maharashtra during October 2011-December 2011 stood at 10.35% as compared to 9.80% in the same period previous year. However, Sugar recovery in U.P. is lesser at 8.47% till 3rd January 2012 as compared to 8.73% in the same period previous year.

According to the Food Minister, Ministry is planning to discuss with States, the Finance and Agriculture Ministries on removing some of the controls such as doing away with the mandatory obligation to offer sugar for the public distribution system (PDS) in the New Year