Sugar prices on the Vashi wholesale spot market dropped further by Rs 6 for S-grade and improved by Rs 4 for M-grade. Activities were routine on Tuesday.

However, prices declined by Rs 15 in the futures market on lack of positive cues. Naka and mill tender rates were unchanged as supplies were ample. Freight rates were steady. Morale was calm, said traders.

Sources said that despite farmers’ agitation for higher cane price and possibilities of delay in crushing activities, the market is not reacting positively in view of producers being saddled with surplus.

An observer said that producers are currently making a loss of Rs 4-5 a kg at current price.

Arrivals at the Vashi market were 58-60 truckloads (of 100 bags each) while local dispatches were 57-58 loads. On Monday, about 12-13 mills offered tenders and sold 37,000-38,000 bags at Rs 2,690-2,790 (Rs 2,690-2,790) for S-grade and Rs 2,810-3,010 (Rs 2,810-3,010) for M-grade.

The Bombay Sugar Merchants Association's spot rates were: S-grade Rs 2,840-2,970 (Rs 2,846-2,971) and M-grade Rs 3,006-3,222 (Rs 3,002-3,222).

Naka delivery rates were: S-grade Rs 2,810-2,900 (Rs 2,810-2,900) and M-grade Rs 2,900-3,130 (Rs 2,900-3,130).

Uttar Pradesh rates were: Muzzafarnagar Rs 3,200.