Mumbai, June 24:

Sugar prices declined by Rs 5-10 a quintal for S-grade and Rs 10-20 for M-grade on the Vashi wholesale terminal market on Monday. The drop followed routine demand and higher supply.

Continuous selling by mills in the absence of upcountry buying put pressure on the local market. Naka rates were steady.

Mill tender rates dropped by Rs 5-10. Volume remained normal but the sentiment was weak, said sources.

A trading source said: “From next month, sentiment may turn positive due to Ramadan and Ashadhi Ekadashi festivals.

Due to higher production this year, sugar prices are under pressure in the last 7-8 months.

“Since January, sugar prices have declined by Rs 200-220 a quintal for S-grade and by Rs 160-170 for M-grade as buyers were aware of the fact of ample supply and have stalling their bulk purchases,” he said.

Arrivals in the Vashi market were 64-65 truckloads (each 100 bags) and local dispatches were about 60-61 loads.

On Saturday, 11-12 mills offered tenders and sold about 28,000-30,000 bags to local traders at Rs 2,925-2,990 (Rs 2,930-3,000) for S-grade and Rs 3,000-3,090 (Rs 3,010-3,100) for M-grade.

On the National Commodities and Derivatives Exchange, July futures were Rs 3,009 (Rs 3,011), August Rs 3,058 (Rs 3,060) and September was Rs 3,110 (Rs 3,110) till noon.

The Bombay Sugar Merchants Association’s spot rates were: S-grade Rs 3,062-3,131 (Rs 3,062-3,131) and M-grade Rs 3,172-3,311 (Rs 3,186-3,331).

Naka delivery rates were: S-grade Rs 3,010-3,060 (Rs 3,010-3,060) and M-grade Rs 3,100-3,180 (Rs 3,100-3,180).