Sugar prices fall by Rs.10 at naka level on Wednesday. The producers sold the commodity at Rs.5- Rs.10 lower, after 22 lakh tons (more than the quota) was declared for the month of September. At Vashi, the spot rates were steady on usual higher local demand in the start of the month. This year due to AdhikMas -- the Navaratri and Dashera festivals will come in October, means the current month will be as usual and normal.

Activities at mill level also improved with higher volume. There is a strong belief in rise of minimum selling price from Rs. 3,100 to Rs. 3,300 and support for exports, thus making reserves kept the morale steady, said sources.

Meanwhile for the season year 2019-20 last quarter July-September, total quota was 10 lakh tons -- higher at 63.50 lakh tons -- compared to previous April-June quota of 53.50 lakh tons. A peak due to lockdown period, in which from production, supply, demand, and consumption were affected. Higher liquidity of stocks kept volume and prices under check since then, said sources.

Arrivals at Vashi were about 48–50 and truck loads (each of 10 tons) and local dispatches were at same level. Inventories at Vashi were about 90-95 truck loads. Freight rates were stable at Rs.80 – Rs.100 per bag.

On Tuesday evening about 18–20 mills offered tenders and sold about 68,000–70,000 bags at Rs.3,150 – Rs. 3,210 (Rs. 3,150 – Rs. 3,220) for S-grade and Rs. 3,240 – Rs. 3,320 (Rs. 3,250 – Rs. 3,320) for M-grade.

On Bombay Sugar Merchants Association's spot rates (Rs/Quintal): S-grade Rs. 3,306 – Rs. 3,362 (Rs. 3,306 - Rs. 3,362) and M-grade Rs. 3,400 – Rs. 3,512 (Rs. 3,402 - Rs. 3,512).

Naka delivery rates (Rs/Quintal): S-grade Rs. 3,240 - Rs. 3,310 (Rs. 3, 250–Rs. 3,320) and M-grade Rs. 3,360–Rs. 3,410 (Rs. 3,370–Rs. 3,420).

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