Sugar prices on the Vashi wholesale market ruled steady on Wednesday as local demand eased. Naka rates saw a positive trend on lower resale of fine variety. Expectation of higher festival demand next month for the premium variety sugar kept mill tender rates firm. Naka and tender rates were up by Rs 5-10.

A Vashi-based wholesaler said that the market is now waiting for announcement July-September quarter free sale quota. If it is more considering festivals then prices may rule steady at current levels. If it is same as the previous quarter, then prices increase. In the July-September quarter, traders hope to see improvement in all-round demand as cane crushing season is drawing to a close. Millers are not under pressure to sell their allotted quarterly quota, which is due on Saturday, as they have continuously sold sugar in local markets with steady rise in price this month.

Delay in monsoon across the country is raising fear about the kharif production, including sugarcane. Sugar production in season year 2012-2013 is initially estimated at 260-265 lakh tonnes but it will depend upon the progress of monsoon. All this indicates firm trend in coming days.

In Vashi market, arrivals were 52-54 truckloads and local dispatches were lower at 47-48 loads lead to increase in inventory. On Tuesday, only about 10 mills offered tenders and sold 20,000-22,000 bags in the range of Rs 2,880-2,930 (Rs 2,880-2,930) for S-grade and Rs 2,960-3,030 (Rs 2,960-3,030) for M-grade.

The Bombay Sugar Merchants Association’s spot rates (Rs/quintal): S-grade Rs 2,982-3,026 (Rs 2,980-3,055) and M-grade Rs 3,041- 3,181 (Rs 3,052-3,181).