Sugar prices in physical market fell further by Rs 10-15 a quintal on bearish sentiments on Tuesday. Slack domestic demand and continuous selling by producers pulled down naka rates by Rs 20-30. Mill tender rates dropped by Rs 10-20.

Everyone is now waiting for fresh cues to set new direction for the market. Announcement of new quota, decision on decontrol of sugar sector, hike in excise duty are the issues that may help lift the sentiment, said sources.

A Vashi-based wholesaler said: “Being the last week of the financial year and month-end time, local retail and semi wholesale demand continued to be lower. Ample supply from producers since the last two months in the local markets in absence of upcountry buying has built up sufficient inventory local level. Hence stockists are not very keen to add more stocks. Domestic futures market extended small gain on second day after sharp fall last week”.

On the NCDEX, sugar futures for April were up by Rs 15 to Rs 2,961 , May by Rs 10 to Rs 3,004 and June was Rs 3,055 (Rs 3,045) till noon.

In Vashi market, arrivals were 62-63 truckloads (each 100 bags) and local dispatches were 61-62 loads.

On Monday evening, about 14-15 mills offered tenders and sold nearly 44,000-45,000 bags to local traders at Rs 2,920-2,980 (Rs 2,950-2,990) for S-grade and Rs 2,980-3,140 (Rs 3,000-3,150) for M-grade.

The Bombay Sugar Merchants Association's spot rates were: S-grade Rs 3,072-3,181 (Rs 3,082-3,181) and M-grade Rs 3,192-3,361 (Rs 3,182- 3,366).

Naka delivery rates: S-grade Rs 3,040-3,060 (Rs 3,050-3,080) and M-grade Rs 3,100-3,220 (Rs 3,120-3,250).