Sugar prices ruled steady in the spot market on Friday, while at the naka level prices saw a mixed trend. Fine variety S-grade, at the mill level, was up by Rs 20 as selling pressure eased and M-grade fair quality lost by Rs 20 tracking continuous selling by mills. Mill tender rates ruled unchanged. New contracts with the producers were low as very few mills offered tenders on the previous day due to Bharat Bandh. Market sentiment was positive, said traders.

Mr Jagdish Rawal, a wholesaler, said the market took a breather at the lower level as traders expect some improvement in retail demand at the beginning of the new month. Sugar prices are currently ruling below parity and producers are not very keen to sell at lower rates. Due to Bharat Bandh, few mills offered tenders late on Thursday evening and sold half of the quantity than daily average selling. Arrival in the market was higher, while local dispatches remained routine and need-based.

According to an observer, sugar production cost in Uttar Pradesh is nearly Rs 2,900-3,000 and in Maharashtra about Rs 2,800-2,900. In Vashi market, arrivals were 58-60 truckloads while local dispatches were 50-52 truckloads. There were no local dispatches. On Thursday evening, about 3-4 mills offered tenders and sold about 23,000–25,000 bags (including one mill sold M-grade 15,000 bags at Rs 2,910) in steady 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 were (Rs/quintal): S-grade Rs 2,922-2,972 (Rs 2,922-2,972) and M-grade Rs 2,996-3,141 (Rs 2,996-3,141).

Naka delivery rates: S-grade Rs 2,880 -2,930 (Rs 2,880-2,910) and M-grade Rs 2,950-3,040 (Rs 2,970-3,040).