Sugar mills continued to sell despite lack of demand for exports and from neighbouring States. Despite this being the beginning of the month, retail demand is low.
As a result, sugar prices ruled unchanged on MondayMr Jagdish Rawal, a wholesale trader, said that demand- supply was routine and volume of trade thin. In view continuous absence of demand from neighbouring States and for exports, producers are forced to sell locally. But local retailers are not interested in building inventory, putting further pressure on prices.
The futures market was also down by Rs 10-15 weighed down by physical market sentiments. The Vashi market carries about 80-100 truckloads of inventory currently.
Retail demand has improved only marginally but ample supply from mills has arrested any upward move. As monsoon approaches near stockists will avoid building invetories.
Retail demand will also ease as a result and hence, the market is not expected to see rise in the near future, he said.
At the Vashi wholesale market, arrivals were 55-56 truckloads, while local despatches were about 54-55 loads. On Saturday evening, 8-10 mills sold about 43,000-45,000 bags in a steady range of Rs. 2,780-2,830 (Rs 2,780-2,830) for S-grade and Rs 2,850-2,920 (Rs 2,850-2,920) for M-grade.
The Bombay Sugar Merchants Association's spot rates (Rs/quintal) : S-grade Rs 2,922-2,972 (Rs 2,922-2,972) and M-grade Rs 2,996-3,131 (Rs 2,996-3,131).
Naka delivery rates : S-grade Rs 2,880 -2,910 (Rs 2,880-2,910) and M-grade Rs 2,970-3,030 (Rs 2,970-3,030).