Sugar prices, on Tuesday, extended gains on tight supply from producing centres due to transporters' strike

Spot price further increased by Rs 20-30, while naka rates improved by Rs 25-30 a quintal in the absence of resellers. Mill tender rates ruled steady, producers continued selling at current price level to avoid stock building due to the transporters' strike.

According to market sources, with transporters on strike from last Thursday, sugar prices have gone up by nearly Rs 100 in consuming markets on disturbed dispatches from mills. There is no sign of the strike being called off. It could result in decline in market inventory.

Local transporters, who are not on strike, have kept local supply smooth till date but disturbance to new arrivals will affect routine business in the coming days. Freight rates also increased by Rs 40-50 a bag at producing level on shortage of trucks. Neighbouring States buying through rail rake increased.

From next week, local demand for sugar is expected to rise on account of Ganeshotsav .

Arrivals in the market were lower at 28-30 truckloads (each 100 bags) while local dispatches were about 38-40 truckloads.

According to traders, mills have sold about two rail rakes (each of 27,000 bags) of S-grade sugar at Rs 2,625-2,650 to neighbouring States. On Monday evening, about 17-18 mills offered tenders and sold about 75,000-80,000 bags to local traders in the Rs 2,650 2,700 range (Rs 2,650–2,700) for S-grade and Rs 2,710–2,780 (Rs 2,7102,780) for M-grade.

Bombay Sugar Merchants Association's spot prices: S-grade Rs 2,826-2,905 (Rs 2,801-2,895) and M-grade Rs 2,846-3,031 (Rs 2,831-3,001).

Naka delivery rates: S-grade Rs 2,760-2,800 (Rs 2,730-2,770) and M-grade Rs 2,820-2,900 (Rs 2,800/2,880).

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