Sugar prices on the Vashi wholesale market ruled steady on Tuesday as producers sold fair quality at prevailing rates. However, they were not willing to sell sugar produced from the new season cane at current level. Hence, there was a shortage of fine variety in the market.

However, need based local demand kept overall sentiment steady.

Fair quality M-grade sugar was sold in spot at Rs 3,316 in the previous two days, were not available today, hence, was quoted at Rs 3,362, said sources. “ Producers are offloading fair quality more and holding back for fine variety new sugar due to price disparity.”

Reports of cold weather mainly in producing centres have increased the prospects of sugar recovery from cane and sugar production weigh on international markets.

In the Vashi market, arrivals were 62-63 truckloads (each of 100 bags), while dispatches were 60-61 truckloads. On Monday evening, about 18-20 mills sold about 68,000-70,000 bags (each of 100 kg) at Rs 3,100-3,150 (Rs 3,100-3,150) for S-grade and Rs 3,220-3,270 (Rs 3,200-3,270) for M-grade.

On the National Commodities and Derivatives Exchange, February futures closed lower by Rs 15 at Rs 3,252 (Rs 3,267); March was down by Rs 15 to Rs 3,283 (Rs 3,298) and April dropped to Rs 3338 (Rs 3,348).

The Bombay Sugar Merchants Association’s spot rates (Rs/kg) were: S-grade Rs 3,242-3,322 (Rs 3,242-3,322) and M-grade Rs 3,362-3,472 (Rs 3,316-3,472).

Naka delivery rates were: S-grade Rs 3,200-3,250 (Rs 3,200-3,250) and M-grade Rs 3,250-3,400 (Rs 3,250-3,400).