Sugar prices at upper mill and naka levels continued their bearish trend on Friday.

A further drop of Rs 10-20 a quintal at mill tender rates pulled down naka prices by Rs 20-30 on higher selling pressure. Producers sold fair quality at lower rates.

With routine activities prices at spot level remained steady. Domestic futures markets were rangebound but volatile in absence of active participants. .

A Vashi-based trader said with ample and continuous supply from mills and ease in local demand in middle month kept business sentiments dull.

No one was willing to bet for a bulk trade.

All were in need-based purchase mood.

Sugar producers are continuously selling in domestic market. Despite having free sugar export policy there is no support from exports.

The local market has ample inventory stocks.

Sugar production till December end is higher compared with the same period last year, he said.

In the Vashi wholesale market, arrivals were 58-60 truckloads (each 100 bags), while dispatches were 56-58 loads.

On Thursday evening, about 12-13 mills offered tenders and sold about 48,000-50,000 bags (each of 100 kg) at Rs 3,100-3,160 (Rs 3,120-3,170) for S-grade and Rs 3,220-3,270 (Rs3,230-3,280) for M-grade.

On the National Commodities and Derivatives Exchange, February futures dropped to Rs 3,254 (Rs 3,258), March declined to Rs 3,289 (Rs 3,291) and April at Rs 3,334 (Rs 3,345) till noon.

The Bombay Sugar Merchants Association’s spot rates: S-grade Rs 3,252-3,332 (Rs 3,252-3,332) and M-grade Rs 3,342-3,472 (Rs 3,342-3,472).

Naka delivery rates were: S-grade Rs 3,200-3,260 (Rs 3,230-3,260) and M-grade Rs 3,260-3,420 (Rs 3,280-3,420).