Sugar prices on the Vashi wholesale market declined by Rs 5-10 a quintal for old stocks, while stocks from the new cane crop ruled steady on Wednesday.

Naka and mill tender rates ruled steady on routine month-end demand that is lower.

Activities were need-based in the spot as stockists at the Vashi market are carrying ample stocks.

Sugar futures also dropped as production has peaked at main cane producing centres.

An observer said that the price for the new season M-grade variety is expected to narrow gap with S-grade which is already ruling below production costs. Sentiment was calm as local demand is not expected to pick up till month-end.

Difference between bold and small variety is about Rs 200-250 a quintal at present.

Producers are continuously selling last year’s sugar at lower price to make space available for new arrivals.

On export front, chances of shipment are bleak due to lower price which is currently ruling near $440 a tonne.

Arrivals at Vashi market were 61-62 truckloads (of 100 bags each) while local dispatches were 60-61 loads.

On Tuesday, 18-20 mills sold 58,000-60,000 bags through tenders in the range of Rs 2,650-2,750 (Rs 2,650-2,750) for S-grade and Rs 2,750-3,000 (Rs 2,750-3,000) for M-grade.

Bombay Sugar Merchants Association's spot rates were: S-grade Rs 2,862-3,012 (Rs 2,852-3,012) and M-grade Rs 2,986-3,212 (Rs 2,986-3,212).

Naka delivery rates were: S-grade Rs 2,810-70 (Rs 2,810-70) and M-grade Rs 2,930-3,130 (Rs 2,930-3,130).

Uttar Pradesh rates were: Muzzafarnagar Rs 3,220.