Sugar price on the Vashi wholesale market ruled weak on continued selling of mills on Monday. On fresh support of local demand and upcountry buying, the sentiment was positive for volumes as the arrivals and dispatches were at par. Spot rates were down by Rs 10 initially, but bounced back on retail demand. Naka and Mill tender rates witnessed a steady trend. The undertone of the market was positive as pressure of selling for last month's carryover stock is now over. Freight rates ruled steady said, traders.

Mr Jagdish Rawal of B. Bhogilal and co, said on support of fresh local demand, dispatches to retailers were higher. At the current lower rate, bulk consumer's inventory buying sentiment improved. Demand in other centres is also showing positive signs.

On the other side, mills are carrying higher stocks due to improvement in production. They are under pressure to ease inventories. On Saturday, 28-30 mills sold about 90,000-1,00,000 bags (100 kg each) of sugar in the range of Rs 2,610-2,640 for S-grade and Rs 2,630-2,720 for M-grade including one rail rake (about 27,000 bags) mostly sold to neighbouring States.

Most of the mills kept tender offers open. On Monday arrivals at the Vashi market were higher by about 58-60 truckloads (100 bags each) and local dispatches were 60-62 truckloads.

Bombay Sugar Merchants Association sugar rates:

Spot rates: S-grade Rs 2,750-2,825 (Rs 2,761-2,815) and M-grade Rs 2,798-2,906 (Rs 2,810-2,911).

Naka delivery rates: S-grade Rs 2,710-2,740 (Rs 2,710-2,740) and M-grade was Rs 2,750-2,790 (Rs 2,760-2,790).

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