Mumbai, April 23:

Sugar prices in the domestic futures market hit the lowest in the month on Tuesday on higher selling and sluggish demand.

On the National Commodities and Derivatives Exchange, sugar May contracts touched a low of Rs 2,925 a quintal in the absence of any support from the physical market. Spot markets were closed in view of the strike against the local body tax for the second consecutive day.

The Vashi wholesale sugar market will remain closed till Wednesday.

Due to the strike, few producers offered sale tender on Monday evening. Activities will be routine after Thursday but due to thin demand at the month-end, prices will remain range-bound in the physical market.

In Vashi market, there were no arrivals – local dispatches or loading – unloading. . Bulk consumers are expected to increase buying due to summer in the coming weeks and it may provide crucial support. Demand for sugar from ice-cream and beverage makers typically rises during the summer.

According to industry, till end of March, the country has produced 230.5 lakh tonnes sugar. Till date, the production is about two per cent less than last year. Last year, the country had produced 234.5 lakh tonnes.

On Monday evening, only 8-10 mills offered tenders and sold 28,000-30,000 bags at Rs 2,930-3,020 (Rs 2,930-3,020) for S-grade and Rs 3,020- 3,110 (Rs 3,020 - 3,110) for M-grade.

On the National Commodities and Derivatives Exchange, sugar May futures were down by Rs 2 to Rs 2,934 (Rs 2,936), June contracts were down by Rs 5 to Rs 2,991 (Rs 2,996) and July was lower by Rs 5 to Rs 3020 (Rs 3025).