Sugar prices on the Vashi wholesale market increased by Rs 10-15 a quintal on Monday, tracking a firm trend at upper levels. Quality sugar was in demand and this pushed up tender rates by Rs 20. Markets extended gain as traders believe that 45 lakh tonnes of free sale quarterly quota for July-September quarter will be inadequate due to a series of festivals during that time. As markets were closed on Saturday for Ashadhi Ekadashi festival, volumes were higher on Monday. A Vashi-based wholesaler said that demand will be higher during festivals such as Ramadan, Raksha Bandhan, Janmashtami and Ganeshotsavduring the second quarter. Secondly, erratic monsoon has also increased the concern about new crop and yield. The situation is definitely worrisome.

He said that sugar prices shot up by Rs 15-20 on Friday on the announcement of free sale quota. .

Domestic sugar futures market has been firm since last week with steady gains.

In Vashi market, arrivals were 55-56 truckloads and local dispatches were 54-55 loads. On Saturday, only 6-8 mills offered tenders and sold 50,000–52,000 bags in the higher range of Rs 2,900-2,950 (Rs 2,880-2,940) for S-grade and Rs 3,000-3,050 (Rs 2,980-3,040) for M-grade.

The Bombay Sugar Merchants Association’s spot rates were (Rs/quintal): S-grade Rs 2,991-3,041 (Rs 2,991 -3,041) and M-grade Rs 3,066- 3,211 (Rs 2,960- 3,201).

Naka delivery rates were: S-grade Rs 2,960 -3,000 (Rs 2,960 -3,005) and M-grade Rs 3,060-3,130 (Rs 3,050-3,120).