Sugar prices ruled steady on Friday on eased supply from mills and routine demand. Bulk consumers' demand for upcoming festivals also had a negative effect of high food inflation and high cost of other food items. Arrivals and dispatches were at the usual level with normal business activity . Moral was steady, said traders.

A wholesaler of Vashi market said from next week festivals start, but the demand from sweet, confectionary and snacks makers is not as expected. Other side smooth supply from mills and routine demand kept sentiment steady. In spot, fair quality sugar continues in demand with the a marginal rise of Rs 5-10 a quintal. Good quality M grade fetched Rs 8-10 higher. Naka and mill tender rates were unchanged, as mills continued selling at present price level .

Inventory building sentiment among stockists was lacking as market carries sufficient stocks to fulfil the demand. There is no big development in the export front which can lead the sentiment. Freight rates are also steady. Market will behave on the basis of demand-supply position with range bound movement because of higher free sale quota for the month, he added.

Retail demand

Retail demand is also less than expected as fasting has begun. Steady sentiment prevailed in other producing centers like Uttar Pradesh, Delhi, Rajasthan, and Gujarat.

On Thursday, about 19-20 mills offered tenders and sold 75,000-80,000 bags (each 100 kgs) to local buyers in the range of Rs 2,575-2,615 (Rs 2,575-2,615) for S grade and Rs 2,630-2,700 (Rs 2,630-2,700) for M grade. Arrival in the market was 50-52 truck loads ( 100 bags each) and local dispatches were also at same level of 51-52 truck loads.

Bombay Sugar Merchants Association sugar rates:

Spot rates: S grade Rs 2,721-2,821 (Rs 2,721-2,811) and M grade Rs 2,761-2,921 (Rs 2,766-2,911).

Naka delivery rates: S grade Rs 2,670-2,710 (Rs 2,670-2,710) and M grade was Rs 2,700-2,860 (Rs 2,700-2,860).

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