Spot sugar price ruled steady on Tuesday on need-based local demand. Naka rates were down by Rs 10 a quintal for S-grade on increase in lifting pressure for nearby due date. Rate for M-grade was unchanged. Mill tender rates showed a firm trend as all are expecting fresh demand to pick up soon. Fresh buying inquiry from neighbouring States also increased.

In the Mumbai market, local demand was less than expected due to vacation period. Arrivals were higher than local dispatch and increased the inventory in the market.

A wholesaler at Vashi market said, “the market may see a bullish trend in the coming days as mills are now getting positive response from the buyers in the price term. At current international prices export of sugar catches price around Rs 28,000 a tonne in Indian currency higher than domestic rates.”

During January to March first fortnight domestic sugar market had witnessed bearish trend, but after allowing sugar exports, that trend has been arrested . Meanwhile, the sugar commissioner's office has directed all the mills not to sell sugar below the London market price. Mills are demanding more export of sugar . According to traders, about 23-24 mills offered tenders, but due to poor response from the buyers, they sold only 45,000-50,000 bags (100 kgs each) to local stockists. Buying by neighbouring States was absent.

Bombay Sugar Merchants Association sugar rates: S-grade: Rs 2,751-2,791 (Rs 2,751-2,800) and M-grade: Rs 2,801-2,911 (Rs 2,801-2,911).

Naka delivery rates: S-grade: Rs 2,710-2,740 (Rs 2,720-2,750) and M-grade: Rs 2,770-2,860 (Rs 2,770-2,860).

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