Sugar prices on the Vashi market shot up by another Rs 100 a quintal on Tuesday, rise of more than Rs 200 in the last two days and more than Rs 350-400 this month tracking higher rates at upper level. Mill tender rates increased by Rs 30-50 and pushed up naka rates by Rs 90-100 ahead of festival season. Sentiment was firm in the physical market but was steady in futures market due to profit booking .
A Vashi-based wholesaler said sugar prices in the physical market crossed the Rs 3,500-mark on good demand from local and upcountry buyers.
The new crushing season will start from October, and supply will be totally dependent on stocks lying with producers or in inventory pipeline. Usually, the Government increases the quota for festivals. Some traders are also demanding immediate ban on sugar exports and futures trading to curb price rise in the physical market.
Despite taking steps to increase higher supply in domestic markets to control prices, the Government on Monday has imposed 10 per cent duty on import of sugar.
In Vashi market, arrivals were 54-55 truck loads and local dispatches were 52-53 truck loads. On Monday about 22-23 mills offered tender and sold about 84,000–85,000 bags (each of 100 kg) to local stockists in the higher range of Rs 3,200-3,280 (Rs 3,170-3,230) for S-grade and Rs 3,320-3,400 (Rs 3,290-3,310) for M-grade.
Bombay Sugar Merchants Association's spot rates: S-grade Rs 3,376-3,441 (Rs 3,270-3,350) and M-grade Rs 3,430-3,511 (Rs 3,320-3,411).
Naka delivery rates: S-grade Rs 3,350 -3,390 (Rs 3,250 -3,300) and M-grade Rs 3,390-3,450 (Rs 3,290-3,370).