MUMBAI, FEB 6: Sugar prices at producing levels dropped by Rs 10-20 a quintal on slack demand while at naka and spot levels, it ruled steady on Wednesday.

Pressure to sell old stocks forced millers to cut prices further by Rs 10-20.

The volume remained subdued as retail demand is also expected to decline in the coming days.

The Vashi wholesale market carries sufficient stocks, so there is no inventory buying among the traders, said sources.

“In the physical market, routine demand from local retailers and absence of bulk consumers put pressure”.

A leading broker said: “Sugar production is at the peak at national level and producers are forced to sell at prevailing rates. “Despite having a liberal export policy, there is no support from export markets. “Cold weather in producing centres has increased the prospects of better sugar output, ” he said.

In the Vashi markets, arrivals were 62-63 truck loads (each of 100 bags) and local dispatches were 60-61 truck loads.

On Tuesday evening, about 15-16 mills offered tenders and sold 48,000-50,000bags (each of 100 kg) in the lower range of Rs 3,080-3,120 (Rs 3,100-3,140) for S-grade and Rs 3,180-3,260 (Rs 3,190-3,260) for M-grade.

On the National Commodities and Derivatives Exchange, sugar prices for March was up by Rs 12 to Rs 3,133 (Rs 3,121) and April was higher by Rs 10 to Rs 3,189 (Rs 3,179) till noon.

The Bombay Sugar Merchants Association’s spot rates: S-grade Rs 3,232- 3,302 (Rs 3,232-3,301) and M-grade Rs 3,302-3,432 (Rs 3,292-3,441).

Naka delivery rates were: S-grade Rs 3,180-3,220 (Rs 3,180 -3,220) and M-grade Rs 3,240-3,370 (Rs 3,240-3,370).