Sugar prices at the mill level dropped by Rs 5-20 a quintal for S-grade and by Rs 10-30 for M-grade late on Wednesday evening as producers sold old stocks to ease inventory burden. The also need cash before the start of crushing activities.
Crushing in Maharashtra and Uttar Pradesh has been slightly delayed due to agitation by farmers for higher cane price and payments.
A Vashi-based wholesaler said that in the Vashi wholesale market, prices ruled steady. The supply of fine-bold variety was tight.
In the physical market, arrivals and local dispatches were equally matched.
There was shortage of vehicles in some producing areas due to Diwali holidays. However, freight rates were steady at higher level, he said.
Arrivals in Vashi market continued to be at 62-63 truckloads (100 bags each) while local dispatches were 61-62 loads.
On Wednesday, 15-16 mills sold about 45,000-48,000 bags at Rs 2,695-2,820 (Rs 2,700-2,840) for S-grade and Rs 2,850-2,980 (Rs 2,880-3,000) for M-grade.
The Bombay Sugar Merchants Association's spot rates were: S-grade Rs 2,890-3,025 (Rs 2,886-3,025) 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).