Sugar prices have gained in the last couple of days as Maharashtra mills have sold 2.5 lakh to three lakh bags (100 kg each) to buyers from eastern parts of the country.

The sale includes 2–3 rail rakes (some 75,000–80,000 bags) volume to West Bengal buyers. Local stockists too have begun to build inventories.

On the other hand, sugar mills are holding the price-line on expectation of higher demand in the coming days.

On Tuesday, prices improved further by Rs 25–30 a quintal in the spot market and Rs 10-30 in Naka delivery on the Vashi wholesale market on Tuesday. Mills tender rates increased Rs 15-20. Mr. Jagdish Rawal, Joint Secretary of Bombay Sugar Merchants Association (BSMA), said that fresh buying by the eastern region stockists and improved local demand pushed up prices in physical and futures markets.

The sentiment was bullish on possibilities of higher sugar exports due to weakness in Indian currency and end of crushing season next month, he said. The rupee's weakening is also aiding the trend.

Rising temperature is likely to lead to higher demand for sugar in the coming days, a leading broker said.

In Vashi market arrivals were 53-54 truckloads and local dispatches were 52-53 loads.

On Monday evening, about 20-22 mills offered tenders and sold about 1.00–1.25 lakh bags in the range of Rs. 2,810-2,930 (Rs 2,780-2,890) for S-grade and Rs 2,920-2,990 (Rs 2,890-2,970) for M-grade.

The Bombay Sugar Merchants Association's spot rates were: S-grade Rs 2,950-3,012 (Rs 2,922-2,982); and M-grade Rs 3,040-3,161 (Rs 3,002-3,151). Naka delivery rates: S-grade Rs 2,930-2,960 (Rs 2,920-2,940) and M-grade Rs 3,000-3,080 (Rs 2,980-3,050).