Sugar was traded at Rs 65 per quintal higher last week at the commodity exchange and market is expected to remain firm in the coming times due to the fears of low yield.

The rejection of petition, field by the mills on SAP issue supported prices at the commodity exchange.

The court upheld the prices fixed by the government at Rs 140-145 per quintal. Other factors such as depreciation of rupee against US dollar, global slow down and liquidity crunch helped to raise the demand of sugar.

Experts believe the price can decline after the end of the crushing season. However, low yield in Maharashtra can help to stabilize the sugar price. Maharashtra mills produced 1.21 million tonnes of sugar in the current season up to Dec.10 which is 16.6 per cent less than last year.

The January, contract on the National Commodity and Derivatives Exchange reported 0.10 percent increase and sugar is traded at 1,918 rupees per quintal.