Sugar prices across the country extended their gain on second day by Rs 40-50 a quintal on Friday, taking cues from a firm sentiment at mill level and tracking firm futures market.
Sugar futures extended their gains on Friday on continued demand. Fears of a lower crop aided the rising trend.
The Vashi wholesale market was closed due to Janmashtami festival hence there was no loading- unloading of commodity in the market.
Prices were quoted higher by Rs 50-70 at spot, naka and mill level.
Traders said that the Government has released four lakh tonnes of additional free sale quota after retail sugar prices crossed the Rs 40/kglast week. This proved positive for consumers as market dropped by over 200 a quintal in three days.
At current prices, traders feel that sugar has been under-priced and they started covering for the coming festivals.
Sugar industry players are expecting prices to settle between Rs 3,300 and Rs 3,500 considering higher cost of parity.
They said that the market seems to have overcome the shock of the Government releasing an additional 4 lakh tonnes of sugar for sale in the open market on Tuesday.
In view of the festival season ahead, traders expect demand to increase.
Sugar prices for M- grade in Vashi spot market touch record high of Rs 3,900 on August 4 with a jump of Rs 300 in first four days of the month.
In Vashi market, arrivals and local dispatch activities remained closed due to holiday.
On Thursday evening about 12 – 13 mills offered tenders and sold about 52,000-54,000 bags (each of 100 kg) sugar to local stockists in the higher range of Rs 3,470-3,540 (Rs 3,420-3,480) for S-grade and Rs 3,570-3,620 (Rs 3,520-3,550) for M-grade.
Spot rates were Rs 60-70 higher at S-grade Rs 3,620-3,700 (Rs 3,551-3,651) and M-grade Rs 3,700- 3,820 (Rs 3,621- 3,761).
Naka delivery rates were S-grade Rs 3,560 -3,620 (Rs 3,500-3,550) and M-grade Rs 3,620-3,720 (Rs 3,570-3,670).