Spot sugar prices on the Vashi wholesale market on Thursday fell by Rs 10 on limited local demand and increased selling pressure at naka and mill delivery level. Naka rates dropped by Rs 25-30 and tender rates by Rs 20-25 a quintal as traders/stockists were not willing to increase the stock.

Whole month retail demand continues to be very poor and on the other side, higher free sale quota weigh on the sentiment heavily. Every stack holder is now eagerly waiting for the announcement of quota or regarding the balance quota of this month, said traders.

Mr Jagdish Rawal of B. Bhogilal and Co said that out of this month's 17 lakh tonnes of free sale quota, about 40 per cent (7 lakh) tonnes is unsold as mills have not been able to offload full quantity on lack of local as well upcountry demand.

This month end's usual lower local demand and expectation of government's steps to protect the sugar sector kept volume thin. This month up to last week due to lack of demand, price decline is about Rs 150/160 a quintal on the spot market. Increased selling by mills to complete the current month's allotted quota before the deadline cooled down tender rates by Rs 10-15.

Mills are holding the price expecting fresh demand and higher prices but are not able get the expected response due to poor demand, he added.

According to Bombay Sugar Merchants Association, spot sugar rates were: S-grade Rs 2,821-2,871 (Rs 2,831-2,881) and M-grade Rs 2,871-2,931 (Rs 2,871-2,931). Naka delivery rates: S-grade Rs 2,770-2,800 (Rs 2,790-2,830) and M grade Rs 2,795-2,850 (Rs 2,820-2,880).

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