Mumbai, Oct. 29:  

Sugar prices on the Vashi market ruled mixed on Tuesday with gain of Rs 2-4 at lower end and loss of Rs 5-10 at higher end on routine activities.

Naka and mill tender rates were steady as producers continued selling while stockists kept away from fresh bets as sufficient stocks were available with them and in market. They were of the opinion that the bulk and retail demand will ease post-Diwali. Morale was calm, said sources.

A Vashi-based wholesaler said, “Since last one month volatility in physical market remained thin with needy producers selling at lower rates to financial liquidity on hand. On the other hand, new crushing season has already started and more than 85 lakh tonnes of opening stocks (carry over stock of last year) along with optimism about higher production in 2013-14 season (about 250 lakh tonnes) clearly indicate ample supply for near term.”

He said, “Sugar prices in other producing States such as Uttar Pradesh, Karnataka and Gujarat are ruling at par with Maharashtra keeping upcountry buyers away forcing mills to sell the commodity in local markets. On export front also chances still remain bleak due to higher supply from Brazil and Thailand.”

Arrivals in Vashi market continued to be at 62-63 truck loads (of 100 bags each) while local dispatches were also 61-62 truck loads.

On Monday, 14-15 mills sold about 33,000-34,000 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 2,896-3,025 (Rs 2,892-3,030) and M-grade Rs 3,012-3,221 (Rs 3,010-3,231). Naka delivery rates were: S-grade Rs 2,840-2,880 (Rs 2,840-2,880) and M-grade Rs 2,950-3,120 (Rs 2,950-3,120). Uttar Pradesh rates were: Lakhimpur Rs 3,310 and Muzzafarnagar Rs 3,320.