Sugar prices declined further by Rs 50-60 on Vashi spot market on Tuesday due to increased selling pressure of producers. To complete the sales of current month’s non levy quota in time, mills started selling at lower price, while local demand eased in middle of the month. Mills sold sugar at Rs 40-60 lower which dragged down naka rates by Rs 60-80 a quintal. With routine volume sentiments remained weak at the end of the day, said traders.
Sources said increased selling pressure at mill level and weak futures market dragged down market sentiment further. Secondly, stockists have covered sugar at higher price in the first week of the month since then prices have came down by more than by Rs 250 hence they prefer to stay away from fresh bulk as retail demand also generally ease in middle month time. Recent monsoon rains allaying concerns about the poor crops also weighed on prices.
In Vashi market, arrivals were 57-58 truck loads (each of 100 bags of quintal each) and local dispatches were about 55-56 truck loads. On Monday about 16–17 mills offered tenders and sold about 80,000-85,000 bags (each of 100 kg) sugar to local stockists in the range of Rs 3,410-3,480 (Rs 3,470-3,520) for S-grade and Rs 3,510-3,570 (Rs 3,550-3,620) for M-grade.
Bombay Sugar Merchants Association's spot rates: S-grade Rs 3,536-3,632 (Rs 3,591-3,676) and M-grade Rs 3,601- 3,791 (Rs 3,651- 3,811). Naka delivery rates: S-grade Rs 3,480 -3,520 (Rs 3,540-3,580) and M-grade Rs 3,550-3,640 (Rs 3,600-3,730).