Sugar continued to be bullish on Tuesday on . In the spot market, prices increased by Rs 20-50 a quintal tracking a jump of Rs 40 at mill level. Naka rates ruled steady. Producers held back stocks as the government has extended the validity period for unsold quantity of August open sale quota by 10 days which has supported the overall sentiment. Expectation of higher retail and wholesale demand for Ganeshotsav festival later this month kept the sentiment firm, said traders.

Meanwhile, the Union Government has decided to extend the validity period for sale and delivery-dispatch of the unsold sugar under the open sale quota required to be sold in August up to September 10. The unsold quantity is estimated to be around two lakh tonnes.

Vashi-based traders said that extension of validity of non-levy quota lead producers to hold back on expectation of a higher price. Currently, retail demand has improved due to month beginning and will continue for next two weeks. The volume with mills was disturbed on Monday evening due to heavy rain in Mumbai.

Higher number of mills offered tenders and sold smaller quantity compare with the previous day on poor feedback received from stockists. The undercurrent, however, remained bullish. Buying from neighbouring States is also expected to rise in Maharashtra. New crushing season is two months away and it may be delayed by 15-20 days due to deficient rain in growing areas. An analyst said that last week eastern State traders had covered about 8 – 10 rakes (total more than two lakh bags) in Maharashtra. In Vashi market, arrivals eased due to heavy rain in Maharashtra and Mumbai previous day. On Tuesday about 54-55 truckloads (100 bags of a quintal each) arrived in the market, while local dispatches were 57-58 loads. On Monday evening, about 20-22 mills offered tenders and sold 50,000-55,000 bags to local traders in the range of Rs 3,460-3,520 (Rs 3,420-3,500 ) for S-grade and Rs 3,500-3,640 (Rs 3,500-3,600) for M-grade.

Bombay Sugar Merchants Association's spot rates: S-grade Rs 3,572-3,632 (Rs 3,522-3,612) and M-grade Rs 3,631- 3,801 (Rs 3,621- 3,781).

Naka delivery rates: S-grade Rs 3,520-3,580 (Rs 3,510-3,570) and M-grade Rs 3,600-3,680 (Rs 3,600-3,690).