Sugar prices jumped by ₹30-40 a quintal in the Vashi wholesale spot market on Monday after the Government’s decision to raise import duty on sugar to 40 per cent. It also raised the mandatory level for blending ethanol in gasoline to 10 per cent from five per cent. Likewise, Naka prices and mill tender rates also shot up by ₹20-50 a quintal.
The volume increased as retailers came forward with fresh orders in the markets and stockists made fresh commitments with producers. Prices in the futures market went up by ₹50-60, crossing the ₹3,100 level – highest since May 3.
Arrivals at Vashi market continued at about 61-62truck loads and local offtake were 60-62 truckloads. On Saturday evening, 19-20 mills offered tenders and sold about 78,000-80,000 bags at ₹2,920-3,010 (₹2,900-3,000) for S-grade and ₹3,010-3,160 (₹3,000-3,150) for M-grade.
On Monday late evening, mill tender rates were expected higher at ₹2,960-₹3,030 for S-grade and ₹3,060-₹3,180 for M-grade.
On National Commodities and Derivatives Exchange July futures was higher by ₹55 to ₹3,099, August increased by ₹64 to ₹3,137 and September rose by ₹58 to ₹3,193.
Bombay Sugar Merchants Association’s spot rates were: S-grade ₹3,030-3,152 (₹3,005-3,152) and M-grade was ₹3,152-3,316 (₹3,152-3,301).
Naka delivery rates were: S-grade ₹2,975-3,050 (₹2,975-3,050) and M-grade ₹3,060 - 3,200 (₹3,060-3,200).