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Sugar prices on the Vashi wholesale market dropped further by Rs 5-18 a quintal on Thursday due to slack demand and ample supply. Naka was traded Rs 30-50 lower on the higher selling. Mill tender rates fell by Rs 10 for S-grade and Rs 10-55 for M-grade.
Producers continued to sell at a discount to ease inventory burden, but enough stocks at the market level kept activities routine and need based. Domestic futures market also extended loss in the absence of positive cues.
“ Sugar prices have been bearish for a long time on limited demand in the domestic and export markets. Higher inventory at the mill and market levels has put pressure. Currently, sugarcane crushing has picked up across the country and producers want to ease their inventory burden as they need cash.
As winter season is on, temperatures have fallen below normal in many parts of the country. Demand for sugar usually drops during winter.
Arrivals at the Vashi market were 60-61 truckloads (each 100 bags), while local dispatches were 59-60 truckloads. On Wednesday, 16-17 mills offered tenders and sold 39,000-40,000 bags at Rs 2,620-2,700 (Rs 2,620-2,710) for S-grade and Rs 2,720-2,880 (Rs 2,730-2,900) for M-grade.
The Bombay Sugar Merchants Association’s spot rates were: S-grade Rs 2,782-2,965 (Rs 2,800-2,950) and M-grade Rs 2,936-3,082 (Rs 2,941-3,092). Nakadelivery rates were: S-grade Rs 2,730-2,830 (Rs 2,760-2,865) and M-grade Rs 2,830-3,000 (Rs 2,810-3,055).
Uttar Pradesh rates were: Muzzafarnagar Rs 3,170.
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