Sugar prices on the Vashi spot market rebounded on Thursday on the back of sharp increase in Naka rates.
In the physical market, prices went up by Rs 10 a quintal due to routine demand, while naka prices increased by Rs 30-40 on eased selling pressure.
Mill tender rates ruled almost unchanged as producers continued selling.
Lifting pressure for October 10 got over and increase in freight rates kept the sentiment positive. Volumes in physical market remained usual, said sources.
A Vashi-based wholesaler said considering higher free sale quota and ample supply from mills, stockists have preferred limited inventory buying since quota was declared.
As free sale quota is higher, sugar prices on the Vashi wholesale market declined by Rs 80-90 this month, while at mill level it dropped by Rs 100-150 a quintal.
Prices may stabilise at current level as festival demand is sure to improve from next week.
In Vashi market, arrivals were about 67-68 truckloads (each of 100 bags of quintal each) and local dispatches were about 67-68 loads.
On Wednesday evening, about 23-24 mills offered tenders and sold 87,000 – 90,000 bags (each of 100 kg) to the local traders in the range of Rs 3,360-3,430 (Rs 3,360-3,430) for S-grade and Rs 3,450 - 3,550 (Rs 3,450 - 3,550) for M-grade.
The Bombay Sugar Merchants Association's spot rates were: S-grade Rs 3,522 – Rs 3,581 (Rs 3,512 – Rs 3,571) and M-grade Rs 3,562- 3,701 (Rs 3,562- 3,691).
Nakadelivery rates: S-grade Rs 3,470 -3,520 (Rs 3,450 -3,480) and M-grade Rs 3,540-3,640 (Rs 3,500-3,600).