Mumbai, June 26:

Sugar prices on the Vashi wholesale market ruled flat on Wednesday amid thin trade. Supply from producers was higher despite local demand easing with month-end in sight.

In the physical market, most of the activities remained limited for bold and fine variety. Retailers are keeping away from stocking up in view of the monsoon being active. From next week, demand from retailers may improve, sources said.

An observer said: “Local demand continues to be need-based as higher inventory in the market is keeping stockists away. In the futures market, prices gained after 4-5 days, tracking a rebound in the world market where August futures have increased by $29.5 in last three days. In the domestic futures, Rs 3000 a quintal could be the support as new crushing season is 3-4 months away.”

Maharashtra is set to float a tender to buy sugar for the public distribution system next month to meet the State’s requirement until October. Andhra Pradesh has already finalised the tender to buy 11,000 tonnes and it is set to float tender for another 22,000 tonnes soon. Procurement by State Governments will provide some relief to producers who are still facing inventory pressure.

Arrivals in the Vashi market were 64-65 truckloads (of 100 bags each) and local dispatches were about 58-60 loads. On Tuesday, 14-15 mills offered tenders and sold about 48,000-50,000 bags to local traders at Rs 2,920-2,980 (Rs 2,920- 2,980) for S-grade and Rs 3,000-3,090 (Rs 3,000- 3,090) for M-grade.

The Bombay Sugar Merchants Association's spot rates were (Rs/quintal): S-grade Rs 3,062– 3,131 (Rs 3,062– 3,131) and M-grade Rs 3,162 - 3,311 (Rs 3,162- 3,311).

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).