Sugar prices on the Vashi wholesale market continued to head north on Wednesday on fears of tight supply as the crushing season is almost over.

In the spot market, despite routine local demand and profit-booking led weak domestic futures market, sentiment remained firm, said market sources.

Mr Jagdish Rawal, a wholesaler, told Business Line: “Prices headed north as millers are not very eager to sell, expecting prices to rise for the coming festivals. Domestic demand is sure to improve during July-September. Maharashtra is also expected to see improved demand from neighbouring States such as Gujarat, Rajasthan and Madhya Pradesh."

“As prices are ruling below mill parity, sentiment will remain bullish. There are about 90-100 truckloads lying as inventory in the Vashi market; hence, there is ample supply of the commodity to feed festival demand. Mills are also selling regularly, with steady price rise,” he said.

In the domestic market, sugar futures were weak, losing Rs 40 till noon on profit-booking. A Europe-based sugar broker said: “This is a ‘weather’ market, and what it does next will depend on the rains in Brazil and India.”

In Vashi market, arrivals were 50-52 truckloads and local dispatches were 51-52 loads. Freight rates ruled unchanged at higher level. On Tuesday evening, 15-16 mills offered tenders and sold about 54,000-55,000 bags (each, 100 kg) to the local stockists at the higher range of Rs 3,060-3,110 (Rs 3,030-3,100) for S-grade and Rs 3,120-3,170 (Rs 3,090-3,150) for M-grade.

The Bombay Sugar Merchants Association's spot rates (Rs/quintal): S-grade Rs 3,160-3,221 (Rs 3,102 -3,235) and M-grade Rs 3,221- 3,331 (Rs 3,201- 3,301). Naka delivery rates: S-grade Rs 3,150 -3,170 (Rs 3,100 -3,130) and M-grade Rs 3,200-3,270 (Rs 3,160-3,240).