The new season year has failed to bring cheer to the Indian sugar market as prices are still on a downslide. Sugar prices have fallen by more than 30 per cent in a year to touch the lowest in 5 years.

Spot market prices declined on the Vashi wholesale market by ₹10-20, taking the total loss to ₹130-150 this month on ample supply amid slack demand. The volume was routine, as mills are continuously selling and moral was weak, said sources.

“Higher supply and limited demand kept the market under pressure. The domestic futures market also dropped by ₹133 for February on rising supplies, in line with the bearish spot market. The physical demand remained low as it is month-end. On the other hand, mills are force to sell at a lower price to ease inventory burden and manage cash,” a source said.

Arrivals at the Vashi market declined to 58-60 truckloads (each 100 bags), while local dispatches were 56-57 truckloads. On Monday evening, 18-20 mills offered tenders and sold 44,000-45,000 bags at ₹2,530-2,610 (₹2,530-2,610) for S-grade and ₹2,680-2,800 (₹2,680-2,800) for M-grade.

On the National Commodities and Derivatives Exchange, February-14 extended lose further by ₹8 at ₹2,660 (₹2,668); March-14 dropped by ₹5 at ₹ 2,680 (₹2,685); and April-14 was down by ₹3 at ₹2,708 (₹2,711) till noon.

The Bombay Sugar Merchants Association’s spot rates were: S-grade ₹2,690- 2,825 (₹2,711-2,825) and M-grade ₹2,816-2,962 (₹2,832 -2,972).

Nakadelivery rates were: S-grade ₹2,600-2,780 (₹2,600-2,780) and M-grade ₹2,770-2,915 (₹2,770-2,915).

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