New Delhi, May 6:

Sugar prices in most wholesale markets were flat to down on Monday amid thin trade, and overall sentiment remained negative, dealers said.

In Delhi and Muzaffarnagar, sugar prices were flat, while the same fell in Kolhapur by Rs 10 a quintal , they said.

“The trading in the market is very thin. However, demand has improved slightly from before but high supplies are keeping prices on check,” a Delhi-based trader said, adding that the price of the sweetener is likely to remain at the current levels for the rest of this week.

High sugar production compared with consumption is also keeping prices at lower levels, the Delhi-based trader said.

According to Indian Sugar Mills Association, mills across the country produced 24.52 million tonnes of sugar in Oct-Apr, compared with an annual consumption of 22-23 mt. The production is lower than last year’s 25.18 mt. Despite a fall in output this year, sugar surplus is higher as the carryover stock was large and exports deals are elusive.

Sugar futures on the National Commodity and Derivatives Exchange closed down tracking spot markets. The May contract closed at Rs 2,916 a quintal, down Rs 3 from the previous close, while June ended at Rs 2,957 , down Rs 15.

Spot rates were (Rs/quintal): M-grade: Rs 3,200-3,290; S-grade: Rs 3,190-3,275. Mill delivery: M-grade: Rs 3,090-3,160; S-grade: Rs 3,080-3,150.