Physical sugar prices on the Vashi wholesale market continued to post moderate gains on Monday. According to an observer, mill tender rates ruled firm on expectation of higher retail demand in the beginning of the month and improved wholesalers’ covering for Ganeshotsavfestival this month kept sentiment bullish in spot and naka level.

Sources said that in the spot market, steady rise in retail demand for quality M-grade pushed up rates by Rs 30 for M-grade. Prices improved by Rs 10-30 a quintal at naka level on tight resale supply. Mill tender rates were up by Rs 20-30. Firm futures market also supported the sentiment.

Mills continued to get good buying support from stockists. On Saturday, fewer mills offered tenders and sold more than 75,000 bags to local traders. New crushing season which generally starts from October may be delayed by 15 – 20 days due to deficient rain and concerns about lower output may lead prices further higher.

In Vashi market, arrivals were higher at 57-58 truck loads (each of 100 bags of quintal) and local dispatches were 56-57 loads. On Saturday evening, 12 – 13 mills offered tenders and sold about 75,000-80,000 bags (of 100 kgs each) to local traders in the range of Rs 3,420-3,500 (Rs 3,390-3,470 ) for S-grade and Rs 3,500-3,600 (Rs 3,480-3,570) for M-grade.

Bombay Sugar Merchants Association's spot rates: S-grade Rs 3,522 – Rs 3,612 (Rs 3,522 - 3,612) and M-grade Rs 3,621- 3,781 (Rs 3,590- 3,751). Naka delivery rates: S-grade Rs 3,510 -3,570 (Rs 3,500 - 3,540) and M-grade Rs 3,610-3,690 (Rs 3,600-3,690).