Sugar prices may begin to look up as the logjam over sugarcane pricing prolongs with all concerned parties hardening their stand.

While growers are demanding higher price for cane, mills are expressing their inability to pay increased support price. Most private mills in Uttar Pradesh are yet to begin crushing operations, while growers in Maharashtra are not supplying cane.

On Thursday, sugar prices on the Vashi wholesale market ruled steady but they dropped marginally in the futures market.

Jagdish Rawal of B. Bhogilal and Cosaid that reports from Kolhapur and Pune talked of farmers agitation disturbing sugar dispatches from mills. Till now, higher carryover stocks have curbed any rise in prices but things could change if farmers intensify their agitation. The Vashi market carries over 120 truckloads of stock as demand has declined after Diwali. Arrivals at the Vashi market were 61-62 truckloads (of 100 bags each), while local dispatches were 58–59 loads. On Wednesday, 16-17 mills offered tenders and sold 43,000–45,000 bags at Rs 2,690-2,790 (Rs 2,690-2,790) for S-grade and Rs 2,800-3,000 (Rs 2,800- 3,000) for M-grade.

On National Commodities and Derivatives Exchange, December futures dropped to Rs 2,829 (Rs 2,843), January to Rs 2,833 (Rs 2,844) and February- to Rs 2,835 (Rs. 2,843).

The Bombay Sugar Merchants Association's spot rates were: S-grade Rs 2,846- 2,962 (Rs 2,840-2,966) and M-grade Rs 3,010-3,222 (Rs 3,006 -3,222).

Naka delivery rates were: S-grade Rs 2,810-2,900 (Rs 2,810-2,900) and M-grade Rs 2,900-3,110 (Rs 2,900–3,110).

Uttar Pradesh rates were: Muzaffarnagar Rs 3,200.