S-grade sugar rose by Rs 5 a quintal and M-grade by Rs 10 in the spot market, extending last week's gains, on higher demand.
Naka and tender rates ruled firm. Demand from retail and bulk buyers rose for fine quality. Sweet and confectionery makers also bought ahead of Diwali. Enquiries from neighbouring States increased, too.
Sentiment improved in the physical market as buying continued at higher prices at the mill level and as futures remained bullish, said Mr Harakhchand Vora, Vice-President of Bombay Sugar Merchants Association. Diwali will keep the markets till the month-end, he added.
Transport charges have risen by Rs 8-10 a quintal in the last four days because of a shortage of trucks as buyers from neighbouring States flock to Maharashtra where sugar is cheaper compared with other centres, sources said. Expectation that the Centre will allow more exports from next month also lifted the market. Arrivals in the Vashi market was at 55-60 truckloads while local dispatches were at 54-55 truckloads. On Saturday, about 17-18 mills offered tenders and sold about one lakh bags to local and eastern traders. Traders from West Bengal bought a rake that has 27,000 bags. Mills sold S-grade at Rs 2,695-2,785 (Rs 2,690-2,780) and M-grade at Rs 2,795-2,910 (Rs 2,790-2,910).
Bombay Sugar Merchants Association's spot rates: S-grade - Rs 2,818-2,895 (Rs 2,812-2,891); M-grade - Rs 2,910-3,062 (Rs 2,892-3,051).
Naka delivery rates: S-grade - Rs 2,770-2,820 (Rs 2,770-2,820); M-grade - Rs 2,875-3,020 (Rs 2,875-3,020).