Sugar prices dropped by Rs 30-40 at naka level on Wednesday on increased selling pressure of old season’s stocks in resale and mill level. Mill tender rates eased by Rs 20 a quintal as good quality old stocks were sold by some producers at lower rates. In ready market, on support of routine activities, prices ruled almost steady with minor changes. The morale was slightly weak in line with bearish futures markets that dropped by Rs 15-20 till noon.

Jagdish Rawal of B. Bhogilal and co., said: “The volume in the physical market remained as usual despite month beginning. Bearish sugar futures weighed on the sentiment. Neither stockists were interested in fresh big inventory buying nor were retailers active. Producers are forced to sell commodity with current market trend as they are under pressure from stocks due to peak crushing season. The market is witnessing routine demand and ample supply since long.”

Sources said with sufficient inventory Vashi traders are not willing to bet for fresh buying as local demand is still not showing improvement. Routine retail demand kept overall volume arrested at market and mill level. Mills are continuously selling hence supply is ample. In Vashi market, arrivals were 63-64 truckloads (each of 100 bags), while local dispatches were 60-62 loads. On Tuesday about 15-16 mills offered tenders and sold 48,000-50,000 (each of 100 kg) bags in the range of Rs 3,160-3,200 (Rs 3,160-3,220) for S-grade and Rs 3,270-3,310 (Rs 3,290-3,330) for M-grade.

The Bombay Sugar Merchants Association's spot rates were: S-grade Rs 3,266-3,352 (Rs 3,270-3,351) and M-grade Rs 3,352-3,511(Rs 3,342- 3,512). Naka delivery rates were: S-grade Rs 3,220-3,260 (Rs 3,250-3,300) and M-grade Rs 3,300-3,400 (Rs 3,330-3,450).