Sugar market witnessed a mixed trend on Thursday with S-grade fine variety increasing by Rs 10 and M-grade declining by Rs 15 on routine local demand.

Naka rates ruled steady, tracking continued selling by mills in line with market trend. Despite increasing temperature, demand has not picked up to meet expectations, said traders.

A Vashi-based wholesaler said stockists made fewer deals as they had piled up one lakh bags each on Monday and Tuesday. On Wednesday evening, mills sold half of that quantity as demand eased. At retail level, demand continued at the usual level despite the summer. Demand from cold drinks producers also seems to be less-than-expected at producing level. Maharashtra has not been seeing neighbouring States' buying for last two months, hence mills are forced to sell in local markets.

Overall sentiment remains firm but an improvement in price will depend on how demand increases and millers' selling.

As of now, mills are not willing to sell at lower rates as they are waiting for higher prices. Fine variety sugar is in higher demand. Some mills are selling off old stocks at lower rates.

On Vashi market, arrivals was about 54-55 truckloads and local dispatches were less at about 48-50 truckloads. On Wednesday evening, about 19-20 mills offered tenders and sold 58,000-60,000 bags in the range of Rs 2,760-2,830 (Rs 2,760-2,830) for S-grade and Rs 2,870-2,940 (Rs 2,860-2,950) for M-grade.

The Bombay Sugar Merchants Association's spot rates: S-grade Rs 2,882-2,951 (Rs 2,880-2,941) and M-grade Rs 2,992-3,131 (Rs 3,012-3,141).

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