Sugar prices on the Vashi wholesale market ruled steady on Wednesday except S-grade which declined by Rs 10 a quintal due to fair quality. Naka and mill tender rates were unchanged for the ninth consecutive day.
Meanwhile, agitation by farmers for higher sugarcane price in main producing States has triggered fear about the further delay in crushing and output. An industry observer said that lower sugar prices at domestic level, extended rainfall and agitation by farmers for higher cane price and payment will lead to delay in crushing and lower production.
On the other hand, glut in world market has minimised the chances of Indian exports.
On Tuesday, mills kept their tenders open as there were fewer buyers. However, producers were not very keen to sell at lower price, considering higher cost of production. The current market prices are ruling below production cost and hence there is a little chance for market price to go down further.
Arrivals in Vashi market continued to be at 61-62 truckloads (100 bags each) while local dispatches were also 61-62 loads. On Tuesday, 8-10 mills sold about 18,000-20,000 bags at Rs 2,700-2,840 (Rs 2,700-2,840) for S-grade and Rs 2,880-3,000 (Rs 2,880-3,000) for M-grade.
The Bombay Sugar Merchants Association's spot rates were: S-grade Rs 2,886-3,025 (Rs 2,896-3,025) and M-grade Rs 3,012-3,221 (Rs 3,012-3,231). Nakadelivery rates were: S-grade Rs 2,840-2,880 (Rs 2,840-2,880) and M-grade Rs 2,950-3,120 (Rs 2,950-3,120).
Uttar Pradesh rates were: Lakhimpur Rs 3,310 and Muzzafarnagar Rs 3,220.