Sugar prices on the Vashi wholesale spot market extended gains by Rs 5-20 a quintal on Thursday. Naka rates increased by Rs 30 for M-grade, tracking firm sentiment at mill level. Mill tender rates were up by Rs 10-20 on continued buying from local stockists and eastern buyers. This week about 7-8 rail rakes (each of 27,000 bags) were bought by West Bengal, Orissa buyers that kept the overall sentiment positive. Jagdish Rawal of B. Bhogilal and Co., said: “Continued buying from eastern traders and firm domestic futures markets keep sentiment bullish in physical market despite routine local demand and month-end higher selling pressure. Higher demand is expected for Ganeshotsavfestival next month. Till now neighbouring States buying was missing but this week since last three days fresh buying by eastern States has pushed up sentiment upper mill level in Maharashtra.”

Sources said firm trend will continue next month as sugar prices have dropped by more than Rs 300 in last two-three weeks. Stockists may start building inventory for the festival season from next month. Important Hindu festivals will be celebrated during September to November months and consumer demand will be definitely higher. In Vashi market, arrivals were higher at 54-55 truck loads (each of 100 bags of quintal each) and local dispatches were 50-52 loads. On Wednesday about 15-16 mills sold more than 1.25 lakh bags including two rail rakes (52,000-54,000 bags) to eastern buyers in the range of Rs 3,408-3,458 and sold about 70,000-75,000 bags (each of 100 kgs) to local traders in the range of Rs 3,360-3,420 (Rs 3,340-3,420) for S-grade and Rs 3,420-3,520 (Rs 3,400-3,510) for M-grade.

Bombay Sugar Merchants Association's spot rates: S-grade Rs 3,485-3,552 (Rs 3,482 - 3,552) and M-grade Rs 3,561- 3,711 (Rs 3,546- 3,711). Nakadelivery rates: S-grade Rs 3,440 -3,480 (Rs 3,440-3,480) and M-grade Rs 3,530-3,630 (Rs 3,500-3,600).