Sugar prices rule firm on Tuesday, taking positive cues from announcement of free sale quota for September -11. Price rose by Rs 10–12 in spot while naka delivery was under some selling pressure.

Majority of traders think that considering festival day's higher demands in September, the new month quota is hand to mouth. It carries carry forward of two lakh tonnes of August quota which was not in previous month.

According to traders, mill tender rates rule almost steady but the sentiment was firm on buying interest. Volume improved in line with higher local dispatches after easing sharply in last two three days due to heavy rain in city. The Government has declared total 19.31 lakh tonnes sugar quota for September-11(which includes 15 lakh tonnes of normal quota, 2 lakh tonnes of carry forward of August-11 and 2.31 lakh tonnes of levy quota).

For August-11 total quota was 19.25 lakh tonnes (including normal 17 lakh tonnes and 0.03 lakh tonnes sugar processed out of imported raw sugar and 2.22 lakh tonnes of levy quota). Hence, there is no big change in over all monthly quotas. Consequently, it was not reflected in futures market. Sugar futures prices were range bound and steady, traders said.

According to sources, increased fresh local retail demands for Ganesh Chaturthi festivals along with need-based buying by neighbouring States in rail rake continue to improve business sentiment. Volume was slightly increasing in line with higher arrivals and demands. Moral was firm as traders are expecting higher consumption demand during next 15 days.

Demand from retailers improved ahead of Ganesh Chaturthi. There is also support of bulk consumers buying. Traders expect buying inquiry from Gujarat, Rajasthan and Madhya Pradesh will increase in coming days. Retailers were active buyers to fill the demand for Ramzan id and Ganesh Chaturthi this week. In neighbouring States, price improved in line with hand-to-mouth quota for new month and increase consumption demand.

Arrivals in Vashi market was about 53-54 truck loads (Each of 100 bags of 100 kg) and local dispatches were about 50-52 truck loads. On Monday evening, 19-20 mills have sold about 45,000-50,000 bags through tender offer to local traders in the range of Rs 2,610–2,650 (Rs 2,610–2,650) for S-grade and Rs 2,670– 2,770 (Rs 2,670–2,770) for M-Grade.

Bombay Sugar Merchants Association sugar rates: Spot rates: S-grade Rs 2,756 –2,831 (Rs 2,742 - 2,830) and M-grade Rs 2,801-2,931 (Rs 2,801-2,931).

Naka delivery rates: S-grade Rs 2,720-2,750 (Rs 2,720-.2,750) and M grade was Rs 2,760-2,860 (Rs 2,770-2,870).

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