Sugar prices on the Vashi wholesale market ruled steady at lower level after witnessing a drop of Rs 20-60 a quintal in the morning season on Wednesday. Improvement in futures and expectation of higher demand in the coming days made stockists to come forward to buy, keeping the sentiment positive. Arrivals and local dispatches were higher. Naka prices were stable after declining by Rs 20-50. Mills continued selling due to higher quota for October - November.

A Vashi-based wholesaler said that domestic sugar futures bounced back from lower level and were up by Rs 15-25. In physical market, higher retail demand eased arrivals. Prices at mill level are currently ruling near parity so there is no room for further loss. On the other side, the free sale quota seems to be higher even after considering the demand that can pent up for Navaratri and Dasara later this month.

In Vashi market, arrivals were about 69-70 truckloads (each of 100 bags of quintal each) and local dispatches were about 70-71 truckloads.

On Monday evening, mills sold more than one lakh bags. About 20-22 mills offered tenders and sold 80,000-85,000 bags (each of 100 kg) to the local traders and one rail rake – about 27,000 bags to Eastern buyers at lower price of Rs 3,420-3,450 (Rs 3,480-3,500) for S-grade and Rs 3,500 - 3,570 (Rs 3,550-3,600) for M-grade.

The Bombay Sugar Merchants Association's spot rates: S-grade Rs 3,582 – Rs 3,631 (Rs 3,600 - 3,652) and M-grade Rs 3,642- 3,742 (Rs 3,701- 3,761). Naka delivery rates: S-grade Rs 3,530 -3,560 (Rs 3,550 - 3,610) and M-grade Rs 3,600-3,670 (Rs 3,640-3,720).