Sugar prices on the Vashi terminal market improved by Rs 10 a quintal for the fine variety on Tuesday on higher demand. The naka rate increased by Rs 10 a quintal for M-grade, while S-grade was unchanged. Volume increased at the upper level as mills continued selling. Market sources said the sentiment improved on increase in retail demand and report of possible lower production in Maharashtra next season year due to lower acreage. Demand for the fine variety has gone up after the onset of monsoon. Fresh buying lifted the market mood at the upper level. On the other hand, continued selling by millers to reduce stocks has kept supplies ample. Higher output this year has led to more inventory pressure on millers, sources said.

Continued absence of demand from neighbouring States has forced millers to sell in local markets. Consequently, the futures market ruled range-bound. In Vashi market, 50-52 truckloads arrived while 47-48 truckloads were despatched locally. Freight rates were unchanged on routine demand. On Monday, 18-20 mills offered tenders and sold about 75,000-80,000 bags to local traders at Rs 2,775-2,840 (Rs 2,775-2,840) for S-grade and Rs 2,850-2,930 (Rs 2,850-2,920) for M-grade.

Bombay Sugar Merchants Association's spot rates: S-grade Rs 2,910-2,981 (Rs 2,912-2,981) and M-grade Rs 3,001- 3,151 (Rs 2,992-3,141).

Naka delivery rates: S-grade Rs 2,870 -2,910 (Rs 2,870-2,910) and M-grade Rs 2,950-3,020 (Rs 2,950-3,010).