Sugar prices on the Vashi wholesale spot market dropped by Rs 10-14 a quintal as local demand eased. Naka prices ruled steady while slack wholesale demand pulled down mill tender rates by Rs 10-20.

It seems that needy producers were forced to sell their commodity at lower rates to maintain the financial liquidity. With routine volume in physical market sentiments remained calm.

A Vashi-based wholesaler said: “Dealers were expecting demand to improve with rise of temperature and in the beginning of the month but that did not happen. Supply is ample and local demand continues to be need-based. In absence of neighbouring States buying in Maharashtra and parity price level in other main producing centres, mills are forced to sell their stocks in local markets. Continuous supply has led to enough inventory stocks building in the market. ”

On the NCDEX sugar April futures was down to Rs 3,075 (Rs 3,099), May dropped to Rs 3,135 (Rs 3,162) and June was Rs 3,210 (Rs 3,227).

In Vashi market, arrivals were 63-64 truckloads (each of 100 bags) and local dispatches were 60-62 truckloads.

On Saturday evening, about 11-12 mills sold 48,000-50,000 bags sugar to local traders at Rs 3,010-3,060 (Rs 3,020-3,080) for S-grade and Rs 3,100-3,200 (Rs 3,120-3,220) for M-grade.

The Bombay Sugar Merchants Association's spot rates: S-grade Rs 3,146-3,252 (Rs 3,160-3,252) and M-grade Rs 3,242-3,421 (Rs 3,252- 3,421). Naka delivery rates: S-grade Rs 3,095-3,150 (Rs 3,095-3,150) and M-grade Rs 3,160-3,305 (Rs 3,160-3,305).