Sugar prices ruled firm on Tuesday at the upper naka and tender level, while it remained unchanged in the spot market . In the physical market, the sentiment remained cautious due to the routine local demand and ample supply from mills.

The fine variety sugar was in demand and pushed up prices at the naka level by Rs 20 a quintal for S-grade and Rs 40 for M-grade. Mill tender rates were higher by Rs 10-20, as producers held the price on the expectation of a positive export move at Empowered Group of Ministers meeting to be held soon.

Local demand was less than expected due to month-end, but traders are optimistic about improvement in demand from next week, sources said. Stockists have slowly started covering fine variety on expectation of demand rising.

In Maharashtra's neighbouring States buying is still lagging as production in main producing States, especially Karnataka, Uttar Pradesh and Maharashtra, is higher this year. Bulk consumers demand is also likely to improve.

ON MONDAY ABOUT 12-13 MILLS OFFERED TENDERS AND SOLD 38,000-40,000 BAGS IN THE RANGE OF RS 2,780-2,840 (RS 2,780-2,830) FOR S-GRADE AND RS 2,890-2,960 (RS 2,870-2,940) FOR M-GRADE.

THE BOMBAY SUGAR MERCHANTS ASSOCIATION'S SPOT RATES (RS/QUINTAL): S-GRADE RS 2,902-2,952 (RS 2,902-2,952) AND M-GRADE RS 3,022-3,121 (RS 3,022-3,121).

NAKA DELIVERY RATES: S-GRADE RS 2,850-2,910 (RS 2,870-2,900) AND M-GRADE RS 2,990-3,060 (RS 2,950-3,040).