Sugar prices on the Vashi wholesale terminal dropped by Rs 10-20 a quintal on ample supply. Naka rates ruled steady, while mill tender prices were unchanged even as producers continued to sell in local markets at prevailing rates. Futures fell as investors booked profits. Though shortage of trucks has pushed up freight rates by Rs 4-5, selling by producers in local markets in absence of demand from neighbouring States kept naka and mill tender rates unchanged, said Jagdish Rawal of B. Bhogilal and Co. In Maharashtra, demand from East and South India has been absent since Diwali due to higher production in the country and as sugar is selling at similar prices in other producing States. Sales by mills has increased inventory at Vashi, which has more than 120 truckloads now.
In Vashi, 64-65 truckloads (each of 100 bags) arrived and 61-62 truckloads were despatched locally. On Tuesday evening, about 12-13 mills offered tenders and sold 68,000-70,000 bags (each of a quintal) at Rs 3,060-3,100 (Rs 3,060-3,100) for S-grade and at Rs 3,145-3,260 (Rs 3,145-3,260) for M-grade.
On the National Commodities and Derivatives Exchange, the March contract dropped to Rs 3,095 (Rs 3,100), April to Rs 3,138 (Rs 3,140) and May to Rs 3,180 (Rs 3,187) till noon.
Bombay Sugar Merchants Association’s spot rates: S-grade Rs 3,202-3,282 (Rs 3,202-3,292) and M-grade Rs 3,282-3,441 (Rs 3,312-3,441).
Naka delivery rates: S-grade Rs 3,150-3,220 (Rs 3,150-3,220) and M-grade Rs 3,250-3,360 (Rs 3,250-3,365).