Mumbai, July 25:

Sugar prices in the Vashi wholesale terminal market dropped by Rs 10 on Thursday.

Producers selling at Rs 10-20 lower, pulled down prices in physical market. Naka rates were steady.

Jagdish Rawal of B. Bhogilal and co, said “Less than expected local demand end of the month and continuous supply from mills led to a need based volume as there is sufficient inventory stocks available in the market and stockiest don’t want to take any risk.

“Despite Ramadan, festival demand has not been improved as expected. Now traders are eyeing new month’s demand which may provide some cues for the market.

Sugar production is expected 250 lakh tonnes in 2012-13 (October-September) and for 2013-2014 season, 237 lakh tonnes which is more than the domestic demand of 225-230 lakh tones”.

Sugar futures prices are still caught in a range of Rs 50 as visible during the last couple of weeks in absence of any major demand trigger said analyst. Demand from bulk users eases during the monsoon rain season. In Vashi, market arrivals were 63-64 truck loads (each of 100 bags) and local dispatches were 60-61 truck loads.

On Wednesday about 18-20 mills offered tenders and sold about 33,000-35,000 bags at lower rates Rs 2,920-2,990 (Rs 2,930-3,000) for S-grade and Rs 3,010-3,200 (Rs 3,030-3,220) for M-grade.

On the National Commodities and Derivatives Exchange, sugar August futures were down by Rs 4 to Rs 3,018 (Rs 3,022), September Rs 6 to Rs 3,035 (Rs 3,041) and September decreased by Rs 8 to Rs 3,067 (Rs 3,075).

The Bombay Sugar Merchants Association's spot rates were: S-grade Rs 3,052-3,145 (Rs 3,056-3,142) and M-grade Rs 3,162-3,321 (Rs 3,162-3,321).

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