According to analysts, with the Forward Markets Commission (FMC) in India putting curbs on futures trade in sugar, the sugar futures on Wednesday plummeted to touch the 4 percent final lower track on the Multi-Commodity Exchange (MCX).

With the FMC announcing the shelving of the launch of new sugar futures contracts until 2009-end, on Tuesday, to check the rise in prices of sugar, speculators trimmed down their positions. However, traders can not take new positions in current contracts.

In the opinion of marketmen, the FMC curbs have led to selling pressures. On Wednesday, the June contract NSMM9 on the National Commodity and Derivatives Exchange dropped by 2.47 percent to 2,250 rupees per 100 kg.

Meanwhile, sugar contract for delivery in July month plunged by 3 percent to Rs 2,396 per 100 kg on MCX on Wednesday, with a trading volume of 45 lots. In earlier trading, the futures had lost almost 0.50 percent.

At the same time, the August month contract also noted a 2.66 percent loss to Rs 2,450 per 100 kg, with a trading volume of one lot.