Sugar prices for S-grade dropped by Rs10-30 a quintal, while M-grade ruled steady on the Vashi wholesale market on Monday. Naka and mill level prices were unchanged due to continuous selling by producers.

In the spot market, fair quality sugar was sold at lower rates. With routine demand, activities remained steady. Domestic futures markets saw slight improvement on speculative buying.

A Vashi-based wholesaler said that ample and continuous supply from mills and eased local demand in middle month kept business sentiments need based. Producers continued selling in local market in the absence of neighbouring States buying.

Mukesh Kuwadia, Secretary of Bombay Sugar Merchants Association, said “Sugar producers are forced to sell at prevailing rates.

On export front, also despite having liberal export policy, there is no support from export markets.

Cold weather in producing centres has increased the prospects of sugar recovery from cane which may lead to higher sugar production than initially expected. Sugar production may reach to 240 lakh tonnes-245 lakh tonnes in 2012-2013,” he said.

In Vashi market, arrivals were 58-60 truckloads (each of 100 bags) while dispatches were 57-58 truck loads.

On Saturday evening, about 13-14 mills offered tenders and sold about 50,000-54,000 bags (each of 100 kg) in the range of Rs 3,100-3,150 (Rs 3,100-3,150) for S-grade and Rs 3,220-3,270 (Rs 3,200-3,270) for M-grade.

On the National Commodities and Derivatives Exchange, sugar prices for February futures were higher by Rs 14 at Rs 3,268 (Rs 3,254), March up by Rs13 to Rs 3,299 (Rs 3,286) and April was Rs 3,346 (Rs 3,331) till noon.

The Bombay Sugar Merchants Association’s spot rates: S-grade Rs 3,242-3,322 (Rs 3,252-3,352) and M-grade Rs 3,316-3,472 (Rs 3,316-3,472).

Nakadelivery rates were: S-grade Rs 3,200-3,250 (Rs 3,200-3,250) and M-grade Rs 3,250-3,400 (Rs 3,250-3,400).

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