Mumbai, June 28:

Sugar prices on the Vashi wholesale market dropped by Rs 3-5 a quintal on Friday as some stockists sold the commodity at lower rates.

Bold M-grade variety sold Rs 10 higher. Naka and mill tender rates were unchanged as producers continued selling, while the demand was hand-to-mouth due to month end.

In futures market, July and August contracts dropped by over Rs 30 a quintal or one per cent, the lowest since May 9 on subdued demand amidst surplus supply.

Sources said that prices in the Vashi spot market ruled weak on slack local month-end demand.

Limited activities kept Naka and mill’s trades routine. .

Meanwhile, the Federation of Associations of Maharashtra (FAM) has decided in the meeting of June 19 that the entire trade (wholesalers, retailers and transporters) will observe total bandh on July 15 and 16 to protest against the LBT in Maharashtra, said sources.

Arrivals in the Vashi market, outstripped demand since the beginning of the month.

About 64-65 truckloads (each 100 bags) arrived in the market while local despatches were limited to 58-60 loads. Inventory stocks increased to 125-130 loads now.

On Thursday, 18-20 mills offered tenders and sold about 78,000-80,000 bags at Rs 2,920-2,980 for S-grade and Rs 3,000-3,090 for M-grade.

On the National Commodities and Derivatives Exchange, sugar July futures dropped by Rs 33 to Rs 2,987 (Rs 3,020), August lost by Rs 26 to Rs 3,047 (Rs 3,073) and September dipped by Rs 32 to Rs 3,095 (Rs 3,127) till noon.

The Bombay Sugar Merchants Association’s spot rates were: S-grade Rs 3,062-3,126 (Rs 3,062-3,126) and M-grade Rs 3,184-3,301 (Rs 3,162-3,301).

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).