Sugar prices extended last week's gain by Rs 10-15 a quintal in the physical market on higher retail demand for Diwali and tracking firm mill tender rates.

Mill tender rates improved by Rs 10-30, according to quality, as stockists bought towards the close of trade. Higher producer's rates pushed up naka rates by Rs 20-30 on limited selling in the resale market. Volumes rose in the physical market, said traders.

A spokesman of the Bombay Sugar Merchants Association said arrivals and local dispatches improved as there will not be any new arrivals and dispatches on Wednesday, Thursday and Friday. Wholesale sugar merchants will decide muhurat 's naka rates on Wednesday evening, which will prevail for the next three days. The market will be closed on Friday for Bhau-Bij festival.

Retailers were active buyers, while bulk consumers kept away as they have already covered stocks. A market expert said sugar prices have gone up by Rs 100 this month in the Vashi market, despite a sufficient quota of 17.5 lakh tonnes this month. Arrivals in the Vashi market were higher at 60-62 truckloads, while local dispatches were at 58-60 truckloads. On Saturday, about 12-14 mills offered tenders and sold about 55,000-60,000 bags to local traders at Rs 2,730-2,810 (Rs 2,700-2,800) for S-grade and at Rs 2,840-2,960 (Rs 2,800 -2,950) for M-grade.

Bombay Sugar Merchants Association's spot rates: S-grade — Rs 2,846-2,921 (Rs 2,836-2,911); M-grade — Rs 2,941-3,091 (Rs 2,936-3,091).

Naka delivery rates: S-grade — Rs 2,800-2,870 (Rs 2,800-2,850); M-grade — Rs 2,930-3,060 (Rs 2,900-3,050).

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