Mumbai, Aug 26:

Sugar spot prices eased by Rs 3-5 a quintal on Monday as freight dropped.

Prices on domestic futures market declined by Rs 20-28 on profit booking. Naka rates were steady.

Mill tender rates were down by Rs 5-8 as producers continued selling surplus stocks at every stage.

Sources said that in the absence of upcountry buying and need-based local demand, producers in Maharashtra are forced to sell in local market as new crushing season was approaching.

Karnataka side millers are selling at a par with Maharashtra diverting eastern side demand there.

Freight rates eased by Rs 4-5 and pulled down prices in physical market.

As sugar mills are carrying surplus stocks due to higher production, they will continue selling old stocks, traders said.

Sources said that activities in the physical market were subdued on ample supply and need-based local demand.

The Vashi wholesale market carries more than 120 truckloads (each 100 bags) stocks. Arrivals in the market were 64-65 trucks while local dispatches were also expected at 64-65 trucks.

On Saturday 10-12 mills offered tenders and sold 38,000-40,000 bags at Rs 2,900-3,000 (Rs 2,910-3,000) for S-grade and Rs 3,000-3,100 (Rs 3,010-3,105) for M-grade.

On the National Commodities and Derivatives Exchange, sugar September futures were down by Rs 17 to Rs 3,014 (Rs 3,031), October was lower by Rs 15 to Rs 3,040 (Rs 3,055) and November declined by Rs 22 to Rs 3,060 (Rs 3,082).

The Bombay Sugar Merchants Association’s spot rates were: S-grade Rs 3,042-3,142 (Rs 3,042-3,142) and M-grade Rs 3,162-3,376 (Rs 3,162-3,382).

Naka delivery rates were: S-grade Rs 2,990-3,060 (Rs 2,990-3,060) and M-grade Rs 3,100-3,215 (Rs 3,100-3,215).

Uttar Pradesh rates were: Lakhimpur Rs 3,300 and Muffafarnagar Rs 3,320.