Sugar prices on the Vashi wholesale market ruled steady on Wednesday, while they increased by Rs 25-30 a quintal in the futures market on hopes that the Government will soon give incentives for raw sugar exports.

Activities were routine in the Vashi market due to need-based demand and ample supply from producers.

“As supply has been outstripping demand since the start of the season that began in November in the absence of exports and upcountry demand, prices have been declining since then. Prices have dropped by Rs 75-90 for S-grade and Rs 30-110 for M-grade,” an analyst told Business Line.

“World sugar prices are also ruling lower at $425-430/tonne with a drop of $25-30 this month, erasing chances of refined sugar exports from India. Last year’s heavy carryover stocks and higher production has forced millers to offload the commodity in the local markets and has kept prices under check,” the analyst said.

Tracking the global market trend, Indian producers also expect some incentives for raw sugar exports, the analyst said.

Arrivals on the Vashi market were 60-61 truckloads (100 bags), while local dispatches were 60-62 loads. In last two days, 19-20 mills offered tenders and sold 60,000-65,000 bags at Rs 2,610-2,700 (Rs 2,620-2,700) for S-grade; and Rs 2,720-2,880 (Rs 2,720-2,880) for M-grade. Old season stocks were sold at Rs 10-15 lower also.

On the National Commodities and Derivatives Exchange, February contracts were up by Rs 8 to Rs 2,751 (Rs 2,743); March by Rs 9 to Rs 2,762 (Rs2,753) and April by Rs 11 to Rs 2,780 (Rs 2,769).

The Bombay Sugar Merchants Association’s spot rates were: S-grade Rs 2,766-2,905 (Rs 2,762-2,911); and M-grade Rs 2,931-3,062 (Rs 2,931-3,062).

Nakadelivery rates were: S-grade Rs 2,700-2,810 (Rs 2,700-2,810); and M-grade Rs 2,820-3,000 (Rs 2,820-3,000).

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