Sugar prices dropped by Rs15-25 a quintal on Thursday in absence of any positive cues and slack demand. A bearish sentiment in the domestic futures market also weighed on physical market that is already reeling under selling pressure. Positive signs seem to be evaporated from the market for the time being, feeltraders.

Sugar prices on the Vashi wholesale spot market dropped by Rs10 for M-grade, while S-grade rule unchanged. Immense pressure to resell pulled down naka rates for S-grade by Rs10-25 and M-grade by Rs 20-50.

As the financial year-end nears, producers continue selling at lower prices. The domestic futures market was down by Rs 15 till noon. Jagdish Rawal, a wholesaler, said: “As the financial year-end nears, all (traders and stockists) are busy in closing or finalising their accounts. They are keeping away from buying. On the other side, millers are forced to sell at the prevailing price to maintain liquidity on hand. This has led to ample supply in local markets.

“Prices in other producing centres are also weak at a par with Maharashtra, keeping upcountry buyers off from here. In the local market, there is no sign of revival in retail offtake for the Holi festival next week. Arrivals were higher than demand in Vashi market.

On the National Commodities and Derivatives Exchange, April sugar contracts declined by Rs 15 to Rs 2,977 (Rs 2,989), May by Rs 16 to Rs 3,016 (Rs 3,032) and June Rs 3,064 (Rs 3,079) . In Vashi market arrivals were 64-65 truckloads (100 bags each) and local dispatches were 60-61 loads. On Wednesday evening, a meagre 10-12 mills sold about 30,000-35,000 bags to local traders at Rs 2,980-3,030 (Rs 2,990-3,050) for S-grade and Rs 3,070 - 3,180 (Rs 3,090 - 3,200) for M-grade.

The Bombay Sugar Merchants Association's spot rates were (Rs/quintal): S-grade Rs 3,136-3,221 (Rs 3,136–3,221) and M-grade Rs 3,216-3,391 (Rs 3,22603,391).

Naka delivery rates: S-grade Rs 3,080-3,105 (Rs 3,090-3,130) and M-grade Rs 3,130-3,260 (Rs 3,180-3,280).