The sentiment in the sugar market ruled weak on Monday as the festival demand has got over. Prices on the Vashi wholesale market declined by Rs 2 for S-grade and improved by Rs 10 for M-grade. Naka rates were mixed on limited buying-selling.

Good quality was sold slightly higher while fair quality was sold slightly lower. Mill tender rates were unchanged on subdued volume, said sources.

A Vashi-based wholesaler said that demand for Dussehra got over and for Diwali it is lower than expected. This pulled down prices in the physical market.

Continuous supply from mills in local markets, absence of upcountry buying in Maharashtra’s mills and more than sufficient stocks (about 120- 125 truckloads) in Vashi market kept stockists away from fresh bet.

Bleak chances of sugar exports are forcing the domestic industry to depend on local markets.

New crushing season has begun with optimism of higher sugar production for the fourth consecutive year.

Arrivals at Vashi market were 61-62 truckloads (100 bags each) while local dispatches were lower at 58-60 loads.

On Saturday, only 7-8 mills sold about 11,000-12,000 bags at steady price Rs 2,730-2,830 for S-grade and Rs 2,880-2,980 for M-grade.

The Bombay Sugar Merchants Association's spot rates were: S-grade Rs 2,920-3,090 (Rs 2,922-3,090) and M-grade Rs 3,092-3,246 (Rs 3,082-3,246).

Naka delivery rates were: S-grade Rs 2,870-2,920 (Rs 2,860-2,960) and M-grade Rs 2,970-3,140 (Rs 3,000-3,130).