Mumbai, Nov. 7:  

Sugar prices on the Vashi wholesale market declined by Rs 5-10 a quintal on Thursday as freight rates dropped by Rs 10-20 for bag of 100 kg.

Activities remained hand-to-mouth at the upper level as ample stocks are available in the market. Producers, too, are continuously selling putting pressure on prices. The commodity was sold Rs 10-15 lower in Naka trade.

However, mill tender rates were unchanged. An observer said: “India is poised to record higher production this year also, while consumption, except for local market, is likely to be dull. World sugar prices are ruling below $500, blunting chances of export.”

In local market, demand was need-based and sufficient stocks (about 110-115 truck loads) were available in the market.

However, bearish trend continued because of drop in freight rates which touched Rs 115-120 a bag level has eased to Rs 95-100 level. Arrivals in Vashi market were 57-58 truckloads (of 100 bags each) while local dispatches were 55- 56 loads.

On Wednesday evening, about 15-16 mills offered tenders and sold 38,000-40,000 bags at Rs 2,690-2,820 (Rs 2,690-2,820) for S-grade and Rs 2,850-2,990 (Rs 2,850-2,980) for M-grade.

The Bombay Sugar Merchants Association's spot rates were: S-grade Rs 2,890-3,001 (Rs 2,880-3,001) and M-grade Rs 3,016-3,211 (Rs 3,021-3,211). Naka delivery rates were: S-grade Rs 2,800-2,910 (Rs 2,815-2,900) and M-grade Rs 2,890-3,110 (Rs 2,911-3,120).

Uttar Pradesh rates were: Muzzaffarnagar Rs 3,220 and Hapur Rs 3,180.