Surplus stock with sugar mills amid selling pressure kept market under range bound at a lower level on Wednesday. Producers are currently carrying over 150 lakh tonnes of sugar stocks.

Prices at Vashi increased by ₹10 per quintal on the lower side and ruled steady at the upper end. Naka and mill tender rates remained unchanged on easing demand. Morale was steady, said sources.

Analysts said that opening stocks at the beginning of the year was at 146 lakh tonnes. With the production of 272 lakh tonnes worth of production during the year, total availability was at 418 lakh tonnes. With domestic consumption expected at 200 lakh tonnes for 10 months - October 19 to July 20 (about 20 lakh tonnes every month) and exports of 60 lakh tonnes, total offtake is pegged at 260 lakh tonnes. The balance 158 lakh tonnes is lying with domestic mills. This surplus is keeping market under pressure. Talk of increasing the minimum selling price by ₹200 is keeping prices under check.

Arrivals at Vashi were 36–38 and truck loads (Each of 10 tonnes) and local dispatches were at the same level. Inventory at Vashi was about 80-85 truck loads. Freight rates were steady at ₹80100 per bag.

On Tuesday evening 16–18 mills offer tenders and sold about 40,000–45,000 bags at ₹3,160–3,250 (₹3,160–3250) for S-grade and ₹3,260-3,370 (₹3,260–₹3,370) for M-grade unchanged since last one week. On Bombay Sugar Merchants Association’s spot rates were (Rs./Quintal): S-grade ₹3,342–₹3,382 (₹3,330-₹3,382) and M-grade ₹3,410–3,600 (₹3,400-₹3,602). Naka delivery rates were (Rs./Quintal): S-grade ₹3,310-3,380 (₹3,310–₹3,380) and M-grade ₹3,410–3,480 (₹3,410–3,480).