Mumbai, April 7:

Pressurised by ample supply, sugar prices are unlikely to go down further.

An analyst said. “Sugar prices are under pressure since Diwali but are not expected to go down further as it is already ruling near Rs 3,000 – far below the cost of production. Also, prices are likely to show some improvement with the rise in temperature.”

Sugar prices ruled almost unchanged at upper level on Tuesday tracking range-bound volatility in futures market and slack physical demand at national level. Mumbai’s sugar traders are on indefinite strike against Local Body Tax since May 1 so there were no activities in spot market here.

A wholesaler said: “Vashi APMC Market – 1 including sugar, gur, spices, coconut and other are on indefinite strike in protest of LBT. Vashi Market -2 including Grain and pulses may also join hands soon. As sugar production this year is higher than local demand, prices in other main producing centres are also ruling downward. Upcountry buying is lacking since long in Maharashtra, forcing the State’s mills to concentrate on local markets.ashi sugar market currently carries sufficient 110 – 120 truck loads inventory . There were no fresh arrivals or local dispatches of sugar since May 1. On Monday evening, 13-14 mills offered tenders and sold 28,000-30,000 bags at Rs 2,920-3,000 (Rs 2,910-2,990) for S-grade and Rs 3,000-3,060 (Rs 3,000-3,060) for M-grade.

On the NCDEX, sugar June futures dropped by Rs 5 to Rs 2,951, July contracts was down by Re 1 to Rs 2,987 and August was lower by Rs 6 to Rs 3,022 till noon.