The sugar market witnessed a steady trend on Thursday as supply outstripped demand.

Continuous supplies from producers and ample stocks with stockists have kept prices under check since Diwali.

New sugar stocks have started arriving in the market, forcing producers and stockists to dispose of oldstocks.

Prices at the spot, naka and mill level ruled unchanged, said sources.

Sources said that prices were steady on routine month-end demand.

As Vashi market carries sufficient stocks of 110-115 truckloads, no one wants to build further inventory. Traders prefer selling old stocks to make room for new output.

On the export front, chances of shipments are bleak due to lower price which is currently ruling near $435-440 a tonne.

Arrivals at Vashi market were 60-61 truckloads (of 100 bags each) while local dispatches were 58-60 loads.

On Wednesday, 15-16 mills sold 44,000-45,000 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 2,856-3,012 (Rs 2,862-3,012) and M-grade Rs 2,986-3,192 (Rs 2,986-3,212).

Naka delivery rates were: S-grade Rs 2,810-2,870 (Rs 2,810-2,870) and M-grade Rs 2,930-3,130 (Rs 2,930-3,130).

Uttar Pradesh rates were: Muzzafarnagar Rs 3,220 and Hapur Rs 3,225.