Sugar prices in the spot market witnessed a marginal increase on improved retail demand on Wednesday. On the spot, the S-grade rose by Rs 4-6 a quintal and M-grade by Rs 10 for fine variety. Naka and mill tender rates were unchanged as the market was closed for holiday on Tuesday. Arrivals and dispatches in the market were higher but at the beginning of the month, routine improvement in local demand kept price trend under check. In the international markets, expectations of additional supply from India kept prices under pressure for the fourth consecutive day.

In the last one week, sugar futures have dropped by more than $15 a tonne. Domestic producers are facing inventory glut due to higher production and absence of upcountry bulk buying for long. For them, domestic sale is the only way out to ease stock pressure. Hence, supply is ample, said sources.

A wholesaler said that as sugar prices in other States are at a par with Maharashtra's parity especially in southern States, there were no takers for Maharashtra sugar. In the Vashi market arrivals were 54-55 truckloads and local dispatches were 53-54 truckloads. Tuesday being a holiday there were no mill tenders. Some 5-7 mills were offering tenders till Wednesday afternoon, but the response was poor. Mill tender rates were Rs 2,770-2,880 (Rs 2,770-2,890) for S-grade and Rs 2,860-2,950 (Rs 2,880-2,970) for M-grade.

The Bombay Sugar Merchants Association's spot rates : S-grade Rs 2,912-2,962 (Rs 2,910-2,956) and M-grade Rs 3,002-3,121 (Rs 3,002-3,111).

Nakadelivery rates : S-grade Rs 2,860-2,910 (Rs 2,860-2,910) and M-grade Rs 2,960-3,060 (Rs 2,960-3,060).

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