Mumbai, July 8:

Sugar prices on the Vashi wholesale market ruled steady on Monday on routine local demand.

Naka rates increased by Rs 10 a quintal for bold variety on higher demand, while it dropped by Rs 10 for fair quality on increased selling.

Mill tender rates were unchanged as producers continued to sell in absence of upcountry buying.

Market may be range-bound as supply outstrips demand. Demand for Ramzan and Ashadhi Ekadashi still remained subdued.

A wholesaler said, “The demand for festivals is not as expected. Ample supply from producers continued leading to build up of inventory in the market. Sugar prices in other markets rule at par with Maharashtra’s parity diverting their buying at nearby places. Last week, sugar prices rose due to the Government’s decision to hike import duty on sugar to 15 per cent”.

Sources said that Vashi market currently carries more than 120-125 truckloads of inventory, producers are selling continuously, supply is ample and local demand is still routine. Freight rates were steady higher level.

Last week from Kolhapur – Karad line freight rates went up by Rs 10-12 a bag.

Arrivals at Vashi market declined to 64-65 truckloads (of 100 bags each) while local dispatches were 63-64 loads.

On Saturday, about 11-12 mills offered tenders and sold about 34,000-35,000 bags to local traders at Rs 2,940-3,000 (Rs 2,940-3,000) for S-grade and Rs 3,040-3,120 (Rs 3,040-3,120) for M-grade.

The Bombay Sugar Merchants Association's spot rates were: S-grade Rs 3,066-3,145 (Rs 3,070-3,146) and M-grade Rs 3,202-3,311 (Rs 3,202-3,311).

Naka delivery rates were: S-grade Rs 3,010-3,080 (Rs 3,020-3,070) and M-grade Rs 3,120-3,230 (Rs 3,130-3,220).