MUMBAI, MAY 24:Sugar prices weakened further on Thursday on continuous fall at the upper level. Spot rates declined by Rs 5-15 a quintal as demand was local and routine. Despite an improvement in buying enquiry from West Bengal mills, tender rates dropped by Rs 20-30 a quintal due to higher selling pressure. Naka rates declined by Rs 10-20 on mounting resales. The undercurrent in the market is bearish in the absence of demand from bulk buyers, said traders.

Mr Jagdish Rawal of B. Bhogilal and Co, said: “As it is month end local demand is normal. Supply from mills are ample in local market as there is no noticeable buying by either neighbouring States or bulk buyers in Maharashtra. On Wednesday evening eastern side buyers bought one rail rake (About 27,000 bags) of S-grade at Rs 2,801 a quintal, but markets ignored it as producers continued to sell in the local markets.”

Sugar prices in Uttar Pradesh were also on par with Maharashtra and neighbouring States (North, Madhya Pradesh and Uttar Pradesh) and continued to buy . In South India, higher sugar production in Karnataka, Tamil Nadu and Andhra Pradesh is arresting buying in Maharashtra. Lifting by local stockists from mills is very poor at present, as they also face pressure of physical stocks at the market level. World sugar market is bearish with Brazil's entry. Domestic level mill have to sell good amount of stocks under the free sale quota. The Government has announced 46 lakh tonnes free sale quota for the April-June quarter. In Vashi market arrivals were 46-47 truckloads and dispatches were 42-43 truckloads. On Wednesday 14-15 mills sold about 70,000-75,000 bags including one rail rake in the range of Rs 2,800-2,850 (Rs 2,800-2,870) for S-grade and Rs 2,860-2,940 (Rs 2,880-2,960) for M-grade.

The Bombay Sugar Merchants Association's spot rates (Rs/quintal): S-grade Rs 2,932-2,991 (Rs 2,940-2,996) and M-grade Rs 3,000-3,161 (Rs 3,016-3,171). Naka delivery rates: S-grade Rs 2,900 -2,950 (Rs 2,900-2,950) and M-grade Rs 2,970-3,050 (Rs 2,980-3,070).