Sugar prices ruled weak on Tuesday as the market lost ground on limited local demand. Spot prices on the Vashi market declined by Rs 8-10 a quintal on improved resale selling. Naka rates dropped by Rs 10 for S-grade and by Rs 20 for M-grade on continued arrivals and less-than-expected lifting of stocks.

Mill tender rates fell by Rs 20-30 a quintal on thin fresh buying by stockists. The futures market was also on a downward trend, in keeping with the low morale in the physical market.

A Vashi-based wholesaler said in the absence of fresh buying support by stockists in the local market and neighbouring States for long, the market has become range-bound and is in a steady decline.

Also, the local demand, he said, has eased due to vacations and this being the mid-month period. The producers are, therefore, forced to sell in the local market, leading to ample supply in the market.

The usual demand-supply situation is keeping the sentiment for fresh/ new buying weak. Also, most traders have already covered the required quantity, which they are currently fulfilling, he added.

at the Vashi market, the arrivals were about 52 truckloads and local dispatches, about 49 truckloads.

On Monday evening, 15-16 mills offered tenders and sold 48,000-50,000 bags to local traders at Rs 2,820-2,900 (Rs 2,840-2,930) for S-grade and at Rs 2,900-2,970 (Rs 2,920-2,990) for M-grade.

Bombay Sugar Merchants Association's spot rates: S-grade, Rs 2,940-3,001(Rs 2,948-3,002); and M-grade, Rs 3,016-3,176 (Rs 3,026-3,176).

Naka delivery rates: S-grade, Rs 2,900-2,950 (Rs 2,910-2,950); and M-grade, Rs 2,980-3,070 (Rs 3,000-3,070).