Sugar prices on the Vashi wholesale market continued to decline with spot rates falling by Rs 10-15 on Monday in the absence of local and upcountry demand. This month prices have dropped almost Rs 50-60 a quintal due to selling pressure on higher free sale quota.

Market players are expecting that after the continuous decline, prices may settle at the current level, give or take Rs 10-15. On Monday, naka and mill tender rates also came down by Rs 10-20 a quintal.

Mr Harakhchand Vora of Kavita Trading Co. said: “A higher free sale quota for the current month and unexpected lower retail demand kept trading dull. Due to less-than-expected demand, prices ruled weak, but once the local demand rises, prices may rebound and settle down at the current level. “On Saturday 5-6 mills came forward with tender offers and sold about 70,000-75,000 bags of sugar at Rs 2,780-2,820 for S-grade and Rs 2,820-2,860 for M-grade a quintal to local and State level traders. It includes one rake (about 27,000 bags) sold to an eastern buyer. On Monday, arrivals in the market were about 44-45 truckloads (each 100 bags) and dispatch was about 38-40 truckloads.”

According to Bombay Sugar Merchants Association, spot sugar rates were: S-grade Rs 2,941-2,965 (Rs 2,946-2,972) and M-grade Rs 2,946-3,021 (Rs 2,966-3,041). Naka delivery rates were: S-grade Rs 2,880-2,920 (Rs 2,900-2,930) and M-grade was Rs 2,930-2,960 (Rs 2,930-2,970).

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