Sugar prices at mill level in Maharashtra dropped by more than Rs 100 a quintal on second day tracking extended losses in futures and thin demand in physical markets. Following bearish trend, upper level prices declined by Rs 50-100 in Naka trade and by Rs 50-60 in spot market on Tuesday. Market continued bearish trend due to eased demand at higher price level despite festivals. Sentiment was weak at upper level but rule steady in spot said market sources.
A Vashi-based wholesaler said that need based and isolated retail demand keep volumes routine as demand for Ramzan, Rakha Bandhan got over and support of Janmashtami festival is lighter than expected. Stockists kept away from building up inventory on fear of government’s intervention at higher price level. There are chances that the Union Government may release more quota if the prices move up further. Sugar futures on the National Commodity and Derivatives Exchange (NCDEX) were down by more than Rs 100 till noon tracking weak world market which closed at a five-week low on Monday.In Vashi market arrivals were 56-57 truck loads (of 100 bags each) and local dispatches were about 52-53 truck loads. On Monday, 12-13 mills from Pune, Baramati and Ahmadnagar line sold about 48,000-50,000 bags (of 100 kgs each) to local stockists in the range of Rs 3,530-3,600 (Rs 3,640-3,700) for S-grade and Rs 3,600-3,650 (Rs 3,680-3,800) for M-grade. There were no new purchases witnessed with Kolhapur side mills said traders.
Bombay Sugar Merchants Association's spot rates: S-grade Rs 3,611-3,721 (Rs 3,671-3,742) and M-grade Rs 3,681- 3,831 (Rs 3,742- 3,881). Naka delivery rates: S-grade Rs 3,580 -3,620 (Rs 3,640-3,675) and M-grade Rs 3,650-3,700 (Rs 3,730-3,800).