Sugar prices on the Vashi wholesale market increased by Rs 5-10 a quintal on Tuesday due to rise in freight charges from Kolhapur-Karad line on shortage of trucks due to Ramadan and improved local demand ahead of festivals.

Demand for fine variety was high. Prices in the futures market were bearish.

On Tuesday, local demand outstripped supply after a long time but market still had sufficient stocks capping the price rise, sources said.

Analyst said that since the start of the season year, sugar prices are under pressure.

Sugar production in the 2013-14 year beginning October is estimated at 237 lakh tonnes, down 5.2 per cent from a year ago but higher than the local demand of around 230 lakh tonnes.

Current year, sugar production is expected around 250 lakh tonnes. Maharashtra and Uttar Pradesh, the top two sugar producers have received more rainfall than normal boosting prospects of higher sugar yield.

Arrivals in the Vashi market were 59-60 truck loads (each of 100 bags) while local dispatches were 61-62.

On Monday evening 21-22 mills offered tenders and sold about 68,000-70,000 bags at Rs 2,920-2,980 (Rs 2,910-2,980) for S-grade and Rs 2,980-3,120 (Rs 2,980-3,110) for M-grade.

On the National Commodities and Derivatives Exchange, September futures declined to Rs 3,011 (Rs 3,019), October down to Rs 3,029 (Rs 3,035) and November lower to Rs 3,000 (Rs 3,004) till noon.

The Bombay Sugar Merchants Association’s spot rates were: S-grade Rs 3,052-3,142 (Rs 3,046-3,135) and M-grade Rs 3,162-3,322 (Rs 3,156-3,311).

Naka delivery rates were: S-grade Rs 3,010-3,070 (Rs 3,010-3,060) and M-grade Rs 3,100-3,220 (Rs 3,100-3,220).