MUMBAI, DEC. 31: 

Sugar prices dropped by Rs 10-30 on Vashi wholesale market on Monday as pressure on stockists for lifting the commodity increased due to last day of the month being a due date for contracts made earlier.

Producers also sold old stocks at lower price which pulled down sentiments in physical markets. Volume was routine but traders were optimistic about the demand to improve this week with the start of the new month.

Naka and mill tender rates for new stocks were unchanged, said sources.

A Vashi-based wholesaler told Business Line, “Lifting pressure on stockists for advance commitments they have made and having due date of Dec 31 pulled down prices in physical markets. Some buying may be seen from neighbouring States in Maharashtra which was lacking since long. ”

In Vashi market, arrivals were 62-63 truck loads (each of 100 bags) while dispatches were 58-60 truck loads.

On Saturday, about 8-10 mills offered tenders and managed to sell 38,000-40,000 (each of 100 kg) bags in steady price range of Rs 3,170-3,220 (Rs 3,170-3,220) for S-grade and Rs 3,280-3,340 (Rs 3,280-3,350) for M-grade.

Old, last season’s stocks were sold at Rs 20-25 lower.

Bombay Sugar Merchants Association's spot rates: S-grade Rs 3,266-3,362 (Rs 3,280-3,362) and M-grade Rs 3,342-3,521 (Rs 3,372- 3,531).

Naka delivery rates were: S-grade Rs 3,250-3,300 (Rs 3,250-3,300) and M-grade Rs 3,330-3,450 (Rs 3,330-3,450).