Mumbai, Oct. 24:  

Sugar prices ruled steady at all levels on Thursday on need-based wholesale demand due to ample inventories in the market.

Considering lower prices compared with the cost of production, producers are hesitatant to sell. On the other hand, they seem to be asking for a price at which stockists are not willing to buy.

A Vashi-based wholesaler told Business Line, “As sufficient stocks are lying in the Vashi wholesale market due to routine demand ahead of Diwali, stockists are keeping away from building up inventories. Producers are continuously selling due to higher carryover stocks from last year and expecting better prospects this season.

“Freight rates are also now stable at Rs 100 a bag. In the absence of neighbouring States’ buying in Maharashtra due to price disparity mills are forced to offload their produce in local markets and hence supply is ample here.”

Arrivals in Vashi market were 61-62 truckloads (of 100 bags each) while local dispatches were 60-61 loads.

On Wednesday, only 9-10 mills came forward with tenders and sold about 24,000-25,000 bags at Rs 2,700-2,840 (Rs 2,700-2,840) for S-grade and Rs 2,880-3,000 (Rs 2,880-3,000) for M-grade.

Bombay Sugar Merchants Association's spot rates were: S-grade Rs 2,892-3,035 (Rs 2,892-3,042) and M-grade Rs 3,002-3,251 (Rs 3,002-3,251). Naka delivery rates were: S-grade Rs 2,830-2,920 (Rs 2,830-2,920) and M-grade Rs 2,950-3,120 (Rs 2,950-3,120). Uttar Pradesh rates were: Lakhimpur Rs 3,320 and Muzzafarnagar Rs 3,230.