Sugar prices ruled steady with minor changes on Tuesday on routine demand and ample supply. Volumes remained subdued despite slightly improved retail offtake at the beginning of the month.
Producers are now offering new season’s sugar at a higher price keeping overall trade subdued. Old season stocks are sold at lower price and hence, in absence of active demand, stockists are also not in mood to increase inventory, said sources.
On the Vashi wholesale spot market, sugar prices dropped by Rs 10 a quintal. Naka rates ruled unchanged for the fifth consecutive day. Mill tender rates eased by Rs 10 on lack of demand.
A wholesaler said that due to ample inventory of over 100 truckloads in Vashi market and continuous selling by producers making supply – the availability was more than required in local market. Lack of demand from neighbouring States in Maharashtra is forcing mills to concentrate on local markets.
Lifting pressure on stockists for commitments having nearby due date will weigh on sentiments. Sugar prices dropped by Rs 150-175 in December in absence of sufficient demand, he said.
In Vashi market, arrivals were 63-64 truckloads (each of 100 bags) while dispatches were 60-62 loads.
On Monday, about 13-14 mills offered tenders and sold 44,000-45,000 (each of 100 kg) bags in the range of Rs 3,160-3,220 (Rs 3,170-3,220) for S-grade and Rs 3,290-3,330 (Rs 3,290-3,340) for M-grade.
The Bombay Sugar Merchants Association's spot rates were: S-grade Rs 3,270-3,351 (Rs 3,266-3,362) and M-grade Rs 3,342-3,512 (Rs 3,342- 3,521).
Naka delivery rates were: S-grade Rs 3,250-3,300 (Rs 3,250-3,300) and M-grade Rs 3,330-3,450 (Rs 3,330-3,450).