Sugar prices on the Vashi wholesale market extended gains on Friday. Increased resale selling pressure slowed the rise in price. Spot prices rose by Rs 5-6 a quintal, while naka rates increased by Rs 10. Maharashtra's mills sold over one lakh bags on higher local demand.

Mr Mukesh Kuwadia, Secretary of Bombay Sugar Merchants Association, said that weakness in rupee against the dollar is a positive factor for sugar exports. Despite sharp decline in international prices in the last couple of days, India can offer shipments. After announcement of removal of cap on sugar exports, world sugar prices dropped by $15 a tonne.

Brazil crop

Analyst said the top sugar player in world market Brazil is expected to produce more this year. Brazil's new crop is expected to arrive in June, hence it is better for India to export maximum quantity, before Brazilian sugar enter the world markets. Sources said that arrivals and dispatches improved on higher demand at the beginning of the month. Stockists started covering for building inventories. The sentiment remained positive due to unrestricted exports and end of the crushing season in May-June. Sugar prices are ruling at a par with Maharashtra's parity mainly in the southern States, but demand from Gujarat, Rajasthan and Madhya Pradesh is expected to improve.

In the Vashi market, arrivals were 54-55 truckloads and local dispatches were 52-53 truckloads.

On Thursday, about 21-22 mills offered tenders and sold about 1.25 lakh bags in the range of Rs 2,770-2,880 (Rs 2,770-2,880) for S-grade and Rs 2,880-2,950 (Rs 2,880-2,950) for M-grade.

The Bombay Sugar Merchants Association's spot rates: S-grade Rs 2,912-2,981 (Rs 2,912-2,975) and M-grade Rs 3,002-3,151 (Rs 3,041-3,151).

Nakadelivery rates : S-grade Rs 2,890 -2,930 (Rs 2,880-2,930) and M-grade Rs 2,980-3,060 (Rs 2,970-3,050).

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