Sugar prices ruled steady in the spot market on Wednesday, while they dropped in the futures market on hopes of higher production.

On the Vashi wholesale market, S-grade dropped by Rs 18, while M-grade increased by Rs 4 a quintal.

Naka rates were unchanged barring some mills that sold S-grade Rs 10 lower. Sugar prices are ruling below production costs, despite the delay in cane crushing due to dispute between farmers and producers over cane prices.

Arrivals in Vashi market declined to 58-60 truckloads (of 100 bags each) while local dispatches were 55-56 loads.

On Tuesday evening, about 14-15 mills offered tenders and sold 38,000-40,000 bags at Rs 2,700-2,830 (Rs 2,710-2,830) for S-grade and Rs 2,860-3,000 (Rs 2,860-3,000) for M-grade.

The Bombay Sugar Merchants Association's spot rates were: S-grade Rs 2,862-2,995 (Rs 2,880-2,995) and M-grade Rs 3,016-3,232 (Rs 3,012-3,232).

Naka delivery rates were: S-grade Rs 2,825-2,900 (Rs 2,825-2,900) and M-grade Rs 2,890-3,110 (Rs 2,890-3,110).

Uttar Pradesh rates were: Muzzafarnagar Rs 3,225.