Sugar prices on the Vashi wholesale market dropped by Rs 8-10 a quintal for S-grade and by Rs 10-20 for M-grade on ample supplies. Naka rates were down by Rs 10-20 as producers sold fair quality sugar at lower price.

Mills’ tender rates declined by a similar margin.

The new crushing season has started and the burden of old surplus stocks is putting pressure on producers, according to an observer.

In Mumbai, activities were routine despite Diwali being round the corner. The market is carrying ample stocks since long and retailers’ demand has eased after Dasara keeping stockists away from fresh commitments.

However, the market faces a shortage of fine and bold variety sugar which is still sold at a premium. Arrivals and dispatches were at a par due to Bakrid on Wednesday.

Arrivals at Vashi market were 59-60 truckloads (of 100 bags each) while local dispatches were also 58-60 loads. On Monday, 18-20 mills sold about 48,000-50,000 bags at a discount price of Rs 2,710-2,820 (Rs 2,730-2,830) for S-grade and Rs 2,880-2,980 (Rs 2,880-2,980) for M-grade.

The Bombay Sugar Merchants Association's spot rates were: S-grade Rs 2,912-3,080 (Rs 2,920-3,090) and M-grade Rs 3,061-3,246 (Rs 3,092-3,246).

Naka delivery rates were: S-grade Rs 2,850-2,910 (Rs 2,870-2,920) and M-grade Rs 2,960-3,120 (Rs 2,970-3,140).

Uttar Pradesh rates were: Lakhimpur Rs 3,310 and Muzzafarnagar Rs 3,225.