Elections to the New Bombay Merchants Chambers apex body of Vashi agricultural commodity markets brought sugar business in Mumbai to a half. Traders were busy with the elections.

Hence, sugar prices took a breather after witnessing a rise of Rs 40-50 in the last two days. Prices were steady on Wednesday at all levels with routine demand-supply and business activities. The sentiment is likely to remain firm in the coming days as demand from eastern buyers continues along with buying support from Gujarat and Rajasthan. Maharashtra's mills sold 8-10 rail rake (each of about 25,000 bags) to Kolkata traders this week. Demand from Gujarat and Rajasthan has been met by road transport. On Tuesday evening, few mills offered sell tenders and sold little quantity expecting a higher price. Sugar mills held their price-line as demand is expected to rise further in the coming days. The sentiment remains bullish on possibilities of higher sugar exports due to weakness in Indian currency and end of crushing season domestic level in June, he said.

The 2011-12 world sugar surplus could stand at above 60 lakh tonnes, up from a 52 lakh tonnes surplus projected in February, preliminary figures from the International Sugar Organisation shows. The London-based ISO will release its third revision of the 2011-12 (October-September) world sugar balance in mid-May.

In the Vashi market, arrivals were 52-53 truckloads and local dispatches were 49-50 truckloads. On Tuesday about 5-6 mills sold merely 5,000-6,000 bags in steady range of Rs 2,810-2,930 (Rs 2,810-2,930) for S-grade and Rs 2,920-3,000 (Rs 2,920-3,000) for M-grade.

The Bombay Sugar Merchants Association's spot rates (Rs/quintal): S-grade Rs 2,950-3,012 (Rs 2,950-3,012) and M-grade Rs 3,040-3,161 (Rs 3,040-3,161). Naka delivery rates: S-grade Rs 2,930 -2,960 (Rs 2,930-2,960) and M-grade Rs 3,000-3,080 (Rs 3,000-3,080).