Sugar market appears to be in the grip of a bull run with spot sugar prices on the Vashi wholesale market shooting up Rs 25-30 a quintal on Friday. The announcement of the free sale quota for May including extension of 15 days for unsold quotas this month and the continued uptrend in sugar futures played a role in the sentiment turning positive in the spot market. Naka and Mill tender rates increased by Rs 30-35 a quintal.

According to traders, the free sale quota for May seems to be less for a month during which summer is likely to be harsh. Mills are selling at their own sweet will, forcing desperate traders to offer higher price. Arrivals, dispatches and volume increased marginally. Sugar futures price rose Rs 30 further on Friday taking the total rise in the last three days to Rs 70-75.

Mr. Jagdish Rawal, joint Secretary of the Bombay Sugar Merchants Association, told Business Line thar the spot market tracked rise in sugar futures and announcement of sugar quota.

A wholesaler said that the price rise in last two days is because mills have started selling for delivery in forward, like May 5 and 10.

With the extension given to last month's balance unsold quota, mills have increased their rates. In other producing centres also, prices shot up sharply, supporting the positive sentiment.

Consumer demand is expected to rise further in May. According to traders, about 28-30 mills offered tenders and sold about 70,000-75,000 bags (100 kgs each) to local stockists in the range of Rs 2,630-2,675 for S-grade and Rs 2,700-2780 for M-grade. Mill tender rates are expected to rise further by Rs 10-15.

Arrivals in the market were 54 -55 truckloads (each 100 bags) and local dispatches were 50-52 truckloads.

: Spot: S-grade Rs 2,752 -2,800 (Rs 2,741-2,771) and M-grade Rs 2,801-2,896 (Rs 2,741-2,891).

Naka delivery rates : S-grade Rs 2,730-2,770 (Rs 2,710-2,735) and M-grade Rs 2,780-2,830 (Rs 2,735-2,795).

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