Sugar prices on the Vashi wholesale spot market declined further by Rs 10-20 a quintal on Wednesday due to increased selling – lifting pressure on stockist for purchases made in advance before due dates.

Local demand was need-based. Naka rates dropped by Rs 10 for S-grade but fine-bold variety M-grade improved by Rs 40-50 in absence of resale selling.

Mill tender rates were unchanged as producers were optimistic about improved demand in the beginning of the new month. A Vashi-based wholesaler said that continuous supply from mills and sufficient stocks in the market kept stockists away from fresh buying. No one was willing to bet for new purchase.

Stockists preferred to fulfil the old commitments before due dates. Resale selling pressure may increase this week due to lifting pressure.

Vashi market currently carries stock of more than 10,000 bags and till month-end demand will be less.

The Government has declared total 70 lakh tonnes of non levy sugar quota for December to March which is more than sufficient. In Vashi market, arrivals were 65-66 truck loads (each of 100 bags) and local dispatches were lower about 64-65 truck loads. On Tuesday evening, merely 4-5 mills offered tenders and sold 8,000-10,000 (each of 100 kg) to the local traders at flat rates Rs 3,290-3,350 (Rs3,290-3,350) for S-grade and Rs 3,340-3,420 (Rs 3,340-3,420) for M-grade.

The Bombay Sugar Merchants Association's spot rates: S-grade Rs 3,412-3,492 (Rs 3,432-3,512) and M-grade Rs 3,476-3,701(Rs 3,486- 3,701).Naka delivery rates: S-grade Rs 3,350-3,400 (Rs 3,360-3,410) and M-grade Rs 3,440-3,550 (Rs 3,400-3,500).