Sugar dropped by Rs 5-15 a quintal on the Vashi wholesale market due to buying based on demand and ample supply. Naka rates declined by Rs 5-20 as the mill-level markets turned bearish.

Mill tender rates were down by Rs 10-20, as producers continued to sell, even as transport charges increased by Rs 5-10 a bag. Domestic futures fell by Rs 12-14.

Mills in Maharashtra have been selling within the State, as orders from other States have dried up, said a Vashi-based wholesaler. Consequently, stockists are fully covered, the wholesaler said. Besides, slack local demand has also forced traders to keep away from buying more.

As of now, Vashi has more than 100 truckloads. Prices in other consuming States ruled on par with those in Maharashtra, bringing down upcountry demand. Moreover, the 70-lakh-tonne free-sale quota for December-March is more than sufficient to meet local demand.

On the National Commodities and Derivatives Exchange, the January contract was down Rs 3,277 (Rs 3,291), February to Rs 3,323 (Rs 3,336) and March to Rs 3,358 (Rs 3,370) till noon. In Vashi, 64-65 truckloads (each of 100 bags) arrived, while 62-63 truckloads were despatched. On Monday evening, about 18-20 mills offered tenders and sold 63,000-65,000 bags (each of a quintal) to local traders at Rs 3,180-3,260 (Rs 3,200-3,270) for S-grade and at Rs 3,260-3,340 (Rs 3,270-3,340) for M-grade.

The Bombay Sugar Merchants Association’s spot rates were: S-grade Rs 3,322-3,411 (Rs 3,326-3,411) and M-grade Rs 3,402-3,561 (Rs 3,416-3,561).

Naka delivery rates: S-grade Rs 3,280-3,315 (Rs 3,270-3,320) and M-grade Rs 3,350-3,500 (Rs 3,370-3,500).