Spot sugar prices continue to decline on Tuesday due to sluggish demand at the month end.

S-grade dropped Rs 5, while M-grade ruled steady in physical market. Naka rates were unchanged, tracking continued selling by mills at steady price level.

The volume was normal in the absence of any active bulk buying. The under current was steady as the new month approaches and traders expect improvement in demand.

The volatility in the domestic futures was narrow but the trend was bearish, said sources.

Mr. Jagdish Rawal of B. Bhogilal and Co said, in the absence of buying by neighbouring States in Maharashtra and absence of support on the export front, there was ample supply in the sugar market due to higher production.

Maharashtra's mills are forced to concentrate on State level markets to dispose of materials to avoid building up of inventories.

Due to vacation, demand from retail consumers is low leading to slowing down of lifting from mills.

In the Vashi wholesale market, arrivals were 52-54 truckloads and dispatches were 50–52 loads.

On Monday, 16-17 mills offered tenders and sold about 55,000–60,000 bags in a range of Rs 2,780-2,840 (Rs 2,780-2,840) for S-grade and Rs 2,850-2,930 (Rs 2,850-2,930) for M-grade.

The Bombay Sugar Merchants Association's spot rates (Rs/quintal): S-grade Rs 2,922-2,971 (Rs 2,926-2,976) and M-grade Rs 2,996-3,141 (Rs 2,996-3,141). Naka delivery rates: S-grade Rs 2,880 -2,910 (Rs 2,880-2,910) and M-grade Rs 2,970-3,040 (Rs 2,970-3,040).