Sugar prices extended their loss further by Rs 5-10 a quintal in the Vashi wholesale physical market on Wednesday. This was due to limited local demand seen during the middle of every month and vacation period. Naka rate rule unchanged, while mill tender rates lost further by Rs 20-Rs.25 following a sharp decline in Uttar Pradesh sugar price.

Increased inventories at producer level due to slack demand may put further pressure on sugar spot and futures. Fundamentals for the sugar sector indicate a bearish trend in the medium term, said market sources.

Mr Mukesh Kuwadia, Secretary of Bombay Sugar Merchant Association, toldBusiness Line that sharp decline in northern mills and bearish world futures markets pushed domestic physical market down. Lcal demand was limited and neighboring states buying was missing. Lifting by local stockists from mills was also lower than expected. On the export front, more weakness in Brazilian currency “Real” has tilted the scales in favour of Brazil. Exporters in Brazil are offering cheaper than India. In Vashi market arrivals were 43-44 truckloads and dispatches were 40 – 42 truck loads. On Tuesday 20-22 mills offered tenders and sold 34,000 – 35,000 bags to a local trader in the range of Rs 2,800-2,870 (Rs 2,820-2,900) for S-grade and Rs 2,880-2,960 (Rs 2,900-2,970) for M-grade.

The Bombay Sugar Merchants Association's spot rates were (Rs/quintal): S-grade Rs 2,940-2,996(Rs 2,940-3,001) and M-grade Rs 3,016-3,171 (Rs 3,016-3,176). Naka delivery rates: S-grade Rs 2,900 -2,950 (Rs 2,900-2,950) and M-grade Rs 2,980-3,070 (Rs 2,980-3,070).