Mumbai, July 26:

Sugar prices in the Vashi-Mumbai wholesale sugar market ruled steady on Friday.

Spot prices for S-grade declined by Rs 10.

Naka and mill tender rates were unchanged on month-end slack demand. Traders said continuous selling by producers offset even the slight improvement in retail demand.

Sugar output in 2013-14 marketing year beginning October is likely to drop 5.2 per cent from a year earlier to 237 lakh tonnes, compared with a local demand of around 230 lakh tonnes.

Sugar production in the current year is expected at 250 lakh tonnes, according to the industry.

Prices in the upcountry market also ruled at par with Maharashtra’s parity.

In the Vashi market, arrivals were 61-62 truck loads (each of 100 bags) and local dispatches were 60-61 truck loads. On Thursday, about 14-15 mills offered tenders and sold about 34,000-35,000 bags at Rs 2,920-2,990 (Rs 2,920-Rs 2,990) for S-grade and Rs 3,010-3,200 (Rs 3,010-3,200) for M-grade.

On the National Commodities and Derivatives Exchange, sugar August futures at Rs 3,026 (Rs 3,025), Sept higher by Rs 10 to Rs 3,044 (Rs 3,034) till noon.

Bombay Sugar Merchants Association’s spot rates were: S-grade Rs 3,052-3,135 (Rs 3,052-3,145) and M-grade Rs 3,172-3,321 (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).