MUMBAI, APRIL 10: Improved sentiment at the upper levels pushed up sugar prices on the Vashi wholesale market on Tuesday.

Mill tender rates increased by Rs 20 a quintal on higher demand, leading to spot sugar prices rising by Rs 10-20. Naka rate scaled higher by Rs 15-20. Higher demand from stockists due to the onset of summer resulted in higher volume at the upper level.

A Vashi-based wholesaler said that with temperatures set to rise in the coming days, stockists are going in for fresh inventory purchase.

Local stockists have covered more than one lakh bags at running rates on Monday evening.

Demand from eastern buyers is lacking in Maharashtra but some improvement in demand from Gujarat, Rajasthan and Madhya Pradesh supported the sentiment at the upper level. Fine variety sugar is in demand, while fair quality old stocks were sold at lower rates. Hence, the price gap between fine and fair quality touched widened Rs 80-90, he said.

In the Vashi market arrivals and dispatches improved in line with higher demand. Arrivals in the market were about 54-55 truckloads and local dispatches were about 51-52 loads.

On Monday evening, about 19-20 mills offered tenders and sold 1-1.25 lakh bags in the higher range of Rs 2,760-2,830 (Rs 2,740-2,810) for S-grade and Rs 2,850-2,940 (Rs 2,830-2,930) for M-grade.

The Bombay Sugar Merchants Association's spot rates (Rs/quintal): S-grade Rs 2,880-2,943 (Rs 2,880-2,932) and M-grade Rs 3,011-3,141 (Rs 3,011-3,121).

Naka delivery rates: S-grade Rs 2,830 -2,880 (Rs 2,820-2,860) and M-grade Rs 2,930-3,040 (Rs 2,910-3,025).