Sugar prices ruled steady after extending last week loss by Rs 2-15 a quintal on Monday. Naka rates declined by Rs 10-15, while mill tender rates were unchanged.
Markets have started receiving new season 2012-13 crop at slightly higher rates. Sugar futures were range-bound in the absence of any cue.
A Vashi-based wholesaler said that continuous selling by mills in local markets kept supply ample in physical market and prices under check amid lack of demand from neighbouring States.
Expectation of higher demand in the beginning of the new month could not be realised due to higher supply and sufficient stocks held in the market.
Stockists preferred to stay away from fresh inventory buying.
The market carries about 100 – 110 (each of 100 bags) truckloads of stocks currently, he said.
Analysts said price will not go down from the present level on account of higher production cost due to increase in cane price and other inputs. In Vashi market, arrivals were higher at 66-67 truck loads (each of 100 bags) and local dispatches were 63-64 truck loads.
On Saturday 18-20 mills offered tenders and sold about 70,000-75,000 bags (each of 100 kg) at Rs 3,200-80 (Rs 3,190-3,280) for S-grade and Rs 3,290 - 3,350 (Rs 3,300-70) for M-grade.
The Bombay Sugar Merchants Association's spot rates: S-grade Rs 3,350-3,431 (Rs 3,352-3,432) and M-grade Rs 3,416-3,566 (Rs 3,421- 3,632).
Naka delivery rates were: S-grade Rs 3,290-3,350 (Rs 3,300-3,335) and M-grade Rs 3,360-3,510 (Rs 3,360-3,520).