Sugar prices on the Vashi terminal market improved further by Rs 10-15 a quintal at spot and naka delivery levels on Thursday, tracking demand-supported higher prices at the mill level.

Mill tender rates improved by Rs 20-30. Freight charges on the Kolhapur-Karad line increased by Rs 5-7 a bag on tight availability of vehicles. Volumes were routine due to the mid-month slowdown in retail demand. The sentiment the market remains firm, said traders. Mr Jagdish Rawal of B. Bhogilal & Co said the sentiment was bolstered by fresh local buying support and inquiries from the East. Stockists favoured building up stocks ahead of monsoon onset. The market has been witnessing need-based local demand for the last two months and prices have dropped to below-parity levels, making producers stop selling to avoid losses. Expected lower production next year and higher demand duringRamadan festival starting next month support the sentiment.

Fewer millers offered tenders on Wednesday evening on expectations of a further rise in prices. Demand from neighbouring States is expected to improve soon as the crushing season has ended. Prices have gone up by Rs 40-50 at the mill level in four days this week, he said.A retail sugar broker said retailers' demand for fine variety has gone up. Monsoon has yet to start in Mumbai so they want to cover before heavy rains disturb supply channel. Usually, sugar loses quality in rainy seasons due to higher moisture content. At the Vashi market, arrivals were 50-52 truckloads and local dispatches were 48-50 truckloads.

On Wednesday evening, 11-12 mills offered tenders and sold about 48,000-50,000 bags to local traders in the range of Rs 2,810-2,870 (Rs 2,790-2,850) for S-grade and Rs 2,890-2,970 (Rs 2,860-2,950) for M-grade.

Bombay Sugar Merchants Association's spot rates: S-grade Rs 2,932-2,991 (Rs 2,926-2,986) and M-grade Rs 3,021- 3,181 (Rs 3,011-3,161).

Naka delivery rates: S-grade Rs 2,900 -2,930 (Rs 2,890-2,930) and M-grade Rs 2,960-3,040 (Rs 2,960-3,030).