Sugar prices dropped further by Rs 10-20 a quintal on Thursday at mill level as prices of new and old stocks narrowed due to lack of demand.

Producers who were offering new season’s stocks at Rs 100 higher than old stocks have now cut the premium to Rs 40-50.

Market witnessed bearish trend due to this.

Volume was routine as retailers bought need-based, said traders.

A Vashi-based wholesaler told Business Line: “Continuous weakness in domestic futures, higher sugar production till December end, routine local demand, lack of neighbouring States buying in Maharashtra and unfavourable exports scenario are the cause for overall slump in sugar trade now. Even at the distribution - trading level, players kept quiet by doing business to match only the needs. On the other hand, producers are continuously offloading sugar in the local market due to peak crushing season and avoid increasing inventories. Sugar prices in other main producing States are at par with Maharashtra – especially in southern States,” he added.

In Vashi wholesale market, arrivals were 62-63 truckloads (each of 100 bags), while dispatches were 61-62 loads.

On Wednesday, 15-16 mills offered tenders and sold 54,000-55,000 (each of 100 kg) bags in the range of Rs 3,140-3,190 (Rs 3,160-3,200) for S-grade and Rs 3,260-3,290 (Rs 3,270-3,310) for M-grade.

The Bombay Sugar Merchants Association's spot rates were: S-grade Rs 3,266-3,342 (Rs 3,266-3,352) and M-grade Rs 3,351-3,511 (Rs 3,352- 3,511).

Naka delivery rates were: S-grade Rs 3,220-3,260 (Rs 3,220-3,260) and M-grade Rs 3,300-3,400 (Rs 3,300-3,400).