Sugar prices rose marginally by Rs 5-10 a quintal for fine quality on higher demand, while the normal variety ruled unchanged on Friday.

The sentiment was cautious on lack of local demand while at upper levels, it ruled firm on expectation of higher demand from local market and for exports.

Market sources said that at the Vashi wholesale market, the trend was mixed in naka trade with an increase of Rs 20 for M-grade fine quality and drop of Rs 10 for normal S-grade variety. Tracking firm naka rates, local retailers covered fine quality M-grade at Rs 10 higher in spot market due to higher consumption demand.

The market is now awaiting the outcome of the Empowered group of Ministers (EGoM) meeting to be held next week. An optimism over the Government allowing additional exports of 10 lakh tonnes on top of 30 lakh tonnes already allowed prevails. Sugar futures have firmed up in last two days on expectations of a move to allow more exports, sources said.

Analysts said local demand in physical markets has been steady and need-based due to middle month with routine volumes. Stockists are cautious about building inventories as under new quarterly quota systems, it is difficult to estimate the supply in the market.

In Vashi market, arrivals were 50-51 truckloads and local dispatches were 47-48 loads. On Thursday evening, 16-17 mills offered tenders and sold 60,000-65,000 bags in steady range of Rs 2,770-2,830 (Rs 2,770-2,830) for S-grade and Rs 2,870-2,940 (Rs 2,870-2,940) for M-grade.

The Bombay Sugar Merchants Association's spot rates: S-grade Rs 2,900-2,962 (Rs 2,906-2,961) and M-grade Rs 3,041-3,131 (Rs 3,038-3,121).

Naka delivery rates: S-grade Rs 2,850 -2,920 (Rs 2,860-2,900) and M-grade Rs 2,960-3,050 (Rs 2,960-3,040).