Sugar prices at the Vashi market ruled firm on fresh demand from stockists at the State level and retailers at the mill and local levels on Tuesday. At the mill level, tender rates increased by Rs 10-15 a quintal. Naka delivery prices ruled steady, but market undertone was bullish. Spot prices initially declined by Rs 5-10, but later in the noon turned firm as retailers' demand picked up. Market will be closed on Wednesday because of Anna Patil Punyatithi . So local buyers were active on Tuesday, said traders.

Mr Harakhchand Vora of Kavita Trading Co. said in the ready market volume picks up with fresh retail demand. Arrivals matched dispatches, and there was no pressure on either side. There was no indication from Delhi regarding sugar exports till noon. Undertone at the physical market was bullish. On Monday, about 15-16 mills came with tender offer, and sold about 1-1.25 lakh bags to State-level traders/stockists. Mills offloaded sugar at Rs 2,670-2,705 for S-grade and Rs 2,715-2,750 for M-grade. Bullish sentiment was prevailing at mill level.

Government may decide in favour of the sugar sector either by allowing exports or by announcing lesser free quota for April. Since January, monthly free-sale quota has turned out to be higher because of the absence of demand. With rising temperatures this month, the sector is optimistic about demand at the national level and export permission. Freight rates were unchanged. On Tuesday, arrivals in the Vashi markets were at 47-48 truck loads (each of 100 bags), and local dispatches were at 50-52 truck loads. Bombay Sugar Merchants Association's spot rates: S-grade Rs 2,781-2,815 (Rs 2,786-2,825) and M-grade Rs 2,821-2,901 (Rs 2,828-2,911).

Nakadelivery rates: S-grade Rs 2,750-2,780 (Rs 2,750-2,780) and M-grade was Rs 2,800-2,860 (Rs 2,800-2,860).

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