Spot sugar prices declined further by Rs 15-20 a quintal in the physical market on Wednesday due to limited local demand.
Naka rate fell Rs 10-20, tracking millers selling of old season stocks at lower rates. Mill tender rates dropped by Rs 10-15 on routine support of demand. The volume eased at the retail level due to month-end, said traders.
A wholesaler said that arrivals in Vashi wholesale market arrivals were higher than dispatches. Lack of demand from neighbouring States forced mills to sell their produce within the State.
With production being higher this year, mills now have ample stocks. Market players are expecting the start of summer to lead to higher demand in the coming days. This month, sugar prices have been range-bound as producers are reluctant to sell at lower rates.
Another trader said that the market witnessed weak trend because mills are selling last year season's produce at lower rates, while they hold price for new season's produce. In the absence of demand from eastern and southern side, Maharashtra's mills are forced to sell at local markets.
Arrivals in Vashi were 48-50 truckloads and local dispatches were around 44-45 truckloads. On Tuesday, 19-20 mills offered tenders and sold about 85,000 – 88,000 bags in the range of Rs 2,730-2,800 (Rs 2,740-2820) for S-grade and Rs 2,840-2,900 (Rs 2,850-2,910) for M-grade.
The Bombay Sugar Merchants Association's spot rates: S-grade Rs 2,876-2,932 (Rs 2,882-2,942) and M-grade Rs 2,986- 3,042 (Rs 2,992- 3,062).
Naka delivery rates were: S-grade Rs 2,840 - 2,880 (Rs 2,840 - 2,880) and M - grade Rs 2,940-3,000 (Rs 2,940-3,020).
Keywords: Sugar rates