Sugar prices on the Vashi wholesale market ruled steady on Tuesday after rising continuously the last seven-eight days. Sugar prices in the domestic market increased by Rs 130-150 this month after the announcement of a less than expected quarterly free-sale quota of 45 lakh tonnes for July -September. The end of the crushing season and erratic rain has heightened the concerns on sugar production next year, leading to an overall bullish sentiment.

Sources said that local demand was routine, while there was some profit-selling pressure at the naka level. Mills are not eager to sell, expecting higher prices in the coming days on improved demand nearing the Ramzan festival. There were no changes in spot, naka and mill tender rates. Neighbouring States’ buying was also missing. In the international markets, sugar traders have been bullish in the last six months, after the sweetener moved in a bear market since September. Prices rallied since the start of June, after heavy rainfall in Brazil raised concerns of shortages. The sugar price turnaround has been fast because of the supply issues in Brazil, analysts said. In the domestic market, sugar futures for the current month were higher by Rs 25 a quintal till noon, while prices for August-September futures were range-bound. In the Vashi market, arrivals were 53-54 truckloads and local dispatches were 50-52 -loads. On Monday, 19-20 mills offered tenders and sold about 68,000-70,000 bags (each, 100 kg) in the range of Rs. 3,030-3,100 (Rs 3,030-3,100) for S-grade and Rs 3,090-3,150 (Rs 3,090-3,150) for M-grade.

The Bombay Sugar Merchants Association’s spot rates were : S-grade Rs 3,102-3,235 (Rs 3,102 -3,235) and M-grade Rs 3,201- 3,301 (Rs 3,201- 3,301). Nakadelivery rates : S-grade Rs 3,100 -3,130 (Rs 3,100 -3,130) and M-grade Rs 3,160-3,240 (Rs 3,160-3,240).

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