Mumbai, July 30:

Sugar prices ruled steady across the country on slack demand and ample supply on Tuesday.

The Vashi spot market witnessed small drop of Rs 2-4 a quintal as stockists offloaded at lower prices to manage the financial liquidity.

Naka rates were unchanged, while mill tender rates for M-grade declined by Rs 10 due to ease and need based month-end local demand.

Sentiment remained weak said traders.Sources said that enough inventory stocks on hand and lower retail demand keep stockists away from fresh buying.

They preferred to sell stocks on hand at discount to avoid deterioration quality due to rain. Retailers are waiting for the new month to start purchases. . The market carries above 120 truckloads of inventory since start of the month.

Industry sources said bearish trend in sugar prices since the start of the season year and higher sugarcane prices are crushing sugar mills, which need to increase efficiency and yield for viability. Despite being decontrolled, government policies rather than economic considerations influence sugarcane and sugar prices.

At the end of the current year (September end) closing stocks is expected around 85-90 lakh tonnes.

Arrivals in the market were 63-64 truckloads (each 100 bags) and local dispatches were 61-62 truckloads. On Monday evening, 14-15 mills offered tenders and sold about 35,000 – 36,000 bags at Rs 2,900-2,970 (Rs 2,900-Rs 2,970) for S-grade and Rs 2,980-Rs 3,140 (Rs 2,990-3,150) for M-grade.

On National Commodities and Derivatives Exchange, sugar August futures were down by Rs 5 to Rs 3,011 (Rs 3,016), September lower by the same to Rs 3,029 (Rs 3,034) and October dropped by Rs 5 to Rs 3,053 (Rs 3,058).

The Bombay Sugar Merchants Association’s spot rates were: S-grade Rs 3,040-3,132 (Rs 3,040-3,132) and M-grade Rs 3,160-3,311 (Rs 3,162-3,311). Naka delivery rates were: S-grade Rs 3,000-3,050 (Rs 3,000-3,050) and M-grade Rs 3,080-3,190 (Rs 3,080-3,190).