Spot sugar prices on the Vashi wholesale market on Monday witnessed a marginal decline on poor local demand. Prices were down by Rs 10 a quintal as stockiest were keen on offloading stocks. Naka and Mill tender rates ruled steady as mills were not keen to sell at lower price. The undertone of the market was weak, said traders.

Traders were surprised on absence of fresh active demand even in the beginning of the month. The volume was at usual level as there was no sign of improvement in demand. On the spot, quality sugar was in demand.

Mr Jagdish Rawal, joint secretary of Bombay Sugar Merchants Association said, said that continued lack of demand kept price movement on down. Talk of most of the mills offloading last month's carryover stocks because of time limit.

Market may come under pressure in the second half of the current month as days are less and absence of demand. Currently, besides Mumbai other main consuming markets / centres are also witnessing poor demand, he added.

On Saturday evening about 15 mills came with tender offer and sold about 35,000-37,000 bags of sugar in the range of Rs 2,680-2,740 for S-grade and Rs 2,740-2,780 for M-grade a quintal. Arrivals in the markets were higher about 48-50 truckloads (each 100 bags) and local dispatches were about 45 truck loads led to increase in market inventory.

According to Bombay Sugar Merchants Association, sugar rates were: Spot S-grade Rs 2,811-2,831 (Rs 2,820 / Rs 2,861) and M-grade Rs 2,850-2,930 (Rs 2,860-2,941).

Naka delivery rates: S-grade Rs 2,760-2,800 (Rs 2,760-2,790) and M-grade Rs 2,800-2,870 (Rs 2,800-2,880).

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