Mumbai, Aug 19:

Spot prices on the Vashi wholesale sugar market increased by Rs 5-7 a quintal for fine variety, while they declined by Rs 2-4 for fair quality on Monday.

Retail demand was higher as the market will remain closed on Tuesday for Raksha Bandhan.

Naka and mill tender rates were unchanged for the sixth consecutive day due to routine demand -supply. Market observer said that in the physical market, retailers’ lifting was higher but prices were volatile.

“In the absence of upcountry buying at upper levels, Maharashtra’s mills are forced to sell the commodity in the local markets leading to supply exceeding demand.” Sources said that due to festivals at the domestic level and improved prospects for sugar exports after world prices crossed $500-mark, the undercurrent remains positive.

Importing nations have already started enquiries in India. If the world market continues to rise, then there will be a good chance to export. On the other hand, higher cost of production will prevent prices from declining further, they said.

Meanwhile, arrivals in the Vashi market were 62-63 truckloads (each of 100 bags) while local dispatches were 64-65.

On Saturday evening, only 9-10 mills offered tenders and sold about 28,000-30,000 bags at Rs 2,910-3,000 (Rs 2,910-3,000) for S-grade and Rs 3,010-3,110 (Rs 3,010-3,110) for M-grade, a level not changed since August 12.

On the National Commodities and Derivatives Exchange, sugar September futures were up by Rs 2 to Rs 3,019 (Rs 3,017) and October was down by Re 1 to Rs 3,030 (Rs 3,031) till noon.

The Bombay Sugar Merchants Association’s spot rates were: S-grade Rs 3,044-3,146 (Rs 3,052-3,142) and M-grade Rs 3,182-3,352 (Rs 3,156-3,352).

Naka delivery rates were: S-grade Rs 3,005-3,060 (Rs 3,005-3,060) and M-grade Rs 3,120-3,210 (Rs 3,120-3,210).