Breaking its continuous fall, sugar prices rallied at the Vashi wholesale market here today on emergence of heavy speculative-driven buying from stockists and traders.
"The sudden spurt in sweetener was mainly due to the proposed EGoM (Empowered group of ministers) meet on food today, which is expected to take a decision on imposition of import duty on white sugar," traders said.
"Hoping that the government might reduce the levy sugar quantity is another reason for the price rise, they added.
Small sugar quality (S-30) shot up by Rs 80/115 per quintal to Rs 2,620/2,675 from overnight closing level of Rs 2,540/2,560. Medium sugar quality (M-30) also rose by Rs 80/85 per quintal to Rs 2,650/2,760 as against Rs 2,570/2,675 yesterday.
Following are today's closing rates per quintal, with previous rates in brackets:
Small sugar (S-30) quality Rs 2,620/2,675 (Rs 2,540/ 2,560) and Medium sugar (M-30) quality Rs 2,650/2,760 (Rs 2,570/2,675)