Sugar prices witnessed a mixed trend in the physical market on Thursday. The fine variety S-grade dropped by Rs 5 a quintal, while M-grade was up by Rs 5. Naka and Mill tender rates rule unchanged for the second consecutive day. Improvement in the futures market supported the sentiment in the domestic market. Mr Jagdish Rawal, a wholesaler, said that the volume at upper level improved due to increased lifting by stockists. Resale selling pressure for due date lifting was not witnessed due to expectation of improvement in demand. With the onset of monsoon, demand from traders will ease. They will keep away from building up new inventories and that may increase pressure on producers.

He said that producers are already under pressure of exhausting the April-June quarterly free sale quota before the month end as they did not sell sufficient quantity in April and May, expecting higher demand and price.

In the Vashi wholesale market, arrivals were 54-55 truckloads, while local dispatches were about 50-51 loads. On Wednesday, 20-22 mills sold about 85,000–90,000 bags to local traders in the range of Rs 2,770-2,830 (Rs 2,770-2,830) for S-grade and Rs 2,840-2,910 (Rs 2,840-2,910) for M-grade. Buying from neighbouring States was absent.

The Bombay Sugar Merchants Association's spot rates (Rs/quintal): S-grade Rs 2,920-2,965 (Rs 2,920-2,971) and M-grade Rs 2,992-3,141 (Rs 2,992-3,136).

Naka delivery rates: S-grade Rs 2,860 -2,900 (Rs 2,860-2,900) and M-grade Rs 2,950-3,010 (Rs 2,950-3,010).