Sugar market ruled unchanged on the Vashi wholesale market on Friday. Continuous supply from producers and slack demand kept prices steady, as it is already ruling below cost of production. Demand was need-based and no inventory is being built up due to ample stocks in the market.

On the spot, S-grade increased by Rs 4 a quintal at lower end and M-grade declined by Rs 5. Sources said that traders are hopeful that local demand will improve from next week. As of now supply outstrips demand, keeping prices under check. Producers and stockists are keen to sell old stocks at prices Rs 4-5 lower. Demand for sugar from bulk consumers such as ice-cream and cold drink makers usually drops during the winter.

The Vashi market is carrying over 10 truckloads of stocks hence stockists are not eager to take more inventory risk.

Arrivals at Vashi market were 60-61 truckloads (of 100 bags each) while local dispatches were 58-59 loads. On Thursday, 19-20 mills sold 55,000-56,000 bags at 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.

The Bombay Sugar Merchants Association's spot rates were: S-grade Rs 2,850-3,002 (Rs 2,846-3,002) and M-grade Rs 2,966-3,172 (Rs 2,971-3,172). Naka delivery rates were: S-grade Rs 2,810-80 (Rs 2,810-80) and M-grade Rs 2,950-3,100 (Rs 2,950-3,100).

Uttar Pradesh rates were: Muzzafarnagar Rs 3,170 and Hapur Rs 3,250.