Sugar prices on the Vashi wholesale terminal market rose by Rs 20-30 a quintal on Wednesday on higher retail demand and offtake as the market will remain closed for the next three days up to Saturday to oppose local body tax.

Prices at Naka and mill level remained stable, while in the futures market prices dropped by Rs 5 till noon. Vashi-based wholesaler Jagdish Rawal said: “The Government has implemented Local body Tax in the State. A 0.50 per cent local body tax has lead to landing cost increasing by Rs 17-18 a bag which is reflected in physical prices. “On improved retailers demand, dispatches remained higher today compared to arrivals.” He said traders have decided to go on indefinite strike against LBT under call given by the Federation of Associations of Maharashtra (FAM). The Bombay Sugar Merchants Association’s (BSMA) committee members will meet on Saturday and decide the future course of action. As Vashi market carries average 120 truckloads of inventories, there will not be any immediate shortage.

On the National Commodities and Derivatives Exchange, sugar May contracts declined to Rs 2,999 (Rs 3,004); June contracts were lower at Rs 3,062 (Rs 3,067) and July were up at Rs 3,120 (Rs 3,108) till noon. In the Vashi market, arrivals were 64-65 truckloads (each of 100 bags) and local dispatches were 68-70 loads. On Tuesday evening, about 21-22 mills offered tenders and sold 75,000-80,000 bags at Rs 2,930-2,980 (Rs 2,930-2,980) for S-grade and Rs 2,980-3,140 (Rs 2,980-3,140) for M-grade. In the last two days, producers sold more than 1.25 lakh bags in local markets, said sources.

The Bombay Sugar Merchants Association’s spot rates were (Rs/quintal): S-grade 3,100-3,191 (3,086-3,171) and M-grade 3,200-3,400 (3,172-3,371).

Naka delivery rates were: S-grade 3,020-3,080 (3,020-3,080) and M-grade 3,100-3,250 (3,100-3,250).