Sugar prices on the Vashi wholesale wholesale market shot up by Rs 25-30 a quintal on Thursday following improved demand from local consumers as well as neighbouring States. Good quality sugar was in demand as bulk consumers/retailers covered aggressively for upcoming festivals. Retail shopkeepers entered the market with fresh orders as market will remain closed for three days starting Saturday.

A wholesaler said that talk of Government likely to decide soon on additional quantity of sugar for export under the Open General License (OGL) plus improvement in local and neighbouring States' demand in Maharashtra resulted in bullish sentiment. From Saturday, the market will have a three-day holiday, which will increase the physical demand. Arrivals and dispatches in the market improved sharply. Any announcement of additional quantity for export will fuel the price rise in the festival season”.

He further said that mills were very optimistic about improvement in demand from neighbouring States as prices are higher in other producing States such as Uttar Pradesh. On Wednesday, around 2-3 rail rakes (each 27,000 bags of 100 kg) were sold by mills to neighbouring States. Mills also sold around one lakh bags of sugar to State-level buyers. Continued festival celebrations until the first fortnight of September means consumption demand will not ease, and higher demand will support improvement in prices.

On Wednesday, around 28/30 mills offered tenders and sold a total of about 1.75/1.80 lakh bags (each 100 kg) at a higher rate of Rs 2,590-2,640 (Rs 2,570-2,625) for S-grade and Rs 2,640-2,750 (Rs 2,630-2,720) for M-grade. Arrivals in the market increased to 58-60 truckloads (each 100 bags) and local dispatches were at 55-56 truckloads.

The Bombay Sugar Merchants Association sugar rates were : Spot: S-grade Rs 2,716 -2,865 (Rs 2,716-2,841) and M-grade Rs 2,791-2,961 (Rs 2,761-2,951).

Nakadelivery rates : S-grade Rs 2,660-2,710 (Rs 2,660-2,700) and M-grade Rs 2,750-2,880 (Rs 2,720-2,850).

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