Spot prices on the Vashi wholesale sugar market dropped by Rs 4-10 a quintal on Wednesday.
Activities remained thin at the upper level ahead of the Union Budget.
Selling by some needy mills pulled down Naka rates by Rs10-20. Mill tender rates declined by Rs 10-20. Sources said that “month-end selling pulled down prices further in physical markets.
Maharashtra’s mills sold sugar at Rs 10-20 lower, otherwise most producers are expecting higher local demand with the start of new month from Friday.
“Upcountry buying is absent since long in Maharashtra forcing producers to concentrate on state level markets.
Prices in the other producing centres ruled at par with Maharashtra.
“Vashi market currently carries more than 12,000-12,500 bags (each of 100 kg) inventory keeping stockists away from fresh bulk buying sources said”.
In Vashi markets, arrivals were 64-65 truckloads (each of 100 bag) and local dispatches also improved to 63-64 truckloads.
On Tuesday evening merely 5-7 mills offered tenders and sold 15,000-16,000 bags (each of 100 kg) to local buyers at a lower price Rs 3,060-3,120 (Rs 3,070-3,130) for S-grade and Rs 3,160- 3,250 (Rs 3,180-3,250) for M-grade.
On the National Commodities and Derivatives Exchange, sugar prices for March dropped by Rs 13 to Rs 3,055 (Rs 3,068); April declined by Rs 17 to Rs 3,124 (Rs 3,141) and May was Rs 3,175 (Rs 3,181) till noon.
The Bombay Sugar Merchants Association’s spot rates: S-grade Rs 3,202- 3,282 (Rs 3,206-3,282) and M-grade Rs 3,252-3,421 (Rs 3,262-3,421). Naka delivery rates were: S-grade Rs 3,140-3,190 (Rs 3,150-3,190) and M-grade Rs 3,220-3,350 (Rs 3,240-3,350).