Sugar prices on the Vashi market ruled steady above Rs 3, 600 on Tuesday after witnessing a sharp rise of Rs 450-500 a quintal this month. In spot, S-grade declined by Rs 5-10 while M-grade ruled steady. Naka rates were unchanged as mill tender rates continued ruling higher with firm morale.

Traders said, as sugar prices rose by more than Rs 250 in last one week most traders kept away from fresh buying and preferred booking profits. Fear about announcement of additional quota cooled down the sentiment for a while but fundamentals remain bullish. There was routine demand from Madhya Pradesh, Rajasthan and Gujarat for fine variety M-grade in Kolhapur line. Mr Mukesh Kuwadia, Secretary of Bombay Sugar Merchants’ Association, told Business Line, “ despite taking steps to increase more supply by announcing additional quota as there is a sufficient sugar stock available in country, the Government has recently given comments on steps such as stock control, put 10 per cent duty on raw sugar imports.”Sugar futures on the National Commodity and Derivatives Exchange (NCDEX) gained Rs 25 till noon ignoring the Centre’s intention to control prices by imposing certain curbs. Given the dry weather in leading producing States such as Maharashtra and Karnataka, the general trend is bullish.

In Vashi market, arrivals were 54-55 truck loads and local dispatches were 52-53 truck loads. On Monday evening, 15 -16 mills offered tenders and sold about 70,000 – 75,000 bags (of 100 kgs each) to the local stockists in the range of Rs 3,320-3,400 (Rs 3,320-3,400) for S-grade and Rs 3,420-3,450 (Rs 3,420-3,450) for M-grade.

Bombay Sugar Merchants Association's spot rates: S-grade Rs 3,461-3,531 (Rs 3,472-3,535) and M-grade Rs 3,521- 3,621 (Rs 3,521- 3,621). Nakadelivery rates: S-grade Rs 3,450 -3,500 (Rs 3,450 -3,500) and M-grade Rs 3,500-3,570 (Rs 3,500-3,570).

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