Sugar prices ruled weak following slack demand on Monday.

On the Vashi wholesale market, prices dropped by Rs 20-30 a quintal on the higher side and increased by Rs 5 on the lower side for both the Small and Medium grade.

Increased selling by mills at Rs 10 lower and weak futures kept activities need-based and routine in spot markets.

Naka prices were unchanged.

Traders feel that the current price level is low and it will not drop any further as producers are already selling at loss.

Prices in the futures market fell to the lowest level in a week as the Government delayed a decision on giving financial assistance.

The Government was expected announces sops for raw sugar production this week, but it has postponed it to January 16, dealers said.

Arrivals at Vashi market were 60-62 truckloads (of 100 bags each) while local dispatches were 58- 60 truck loads.

On Saturday, about 18-20 mills sold 54,000-55,000 bags at Rs 2,630-2,730 (Rs 2,640-2,750) for S-grade and Rs 2,730-2,940 (Rs 2,740-2,960) for M-grade.

The Bombay Sugar Merchants Association’s spot rates were: S-grade Rs 2,842-2,951 (Rs 2,832-2,971) and M-grade Rs 2,940-3,132 (Rs 2,941-3,162).

Naka delivery rates were: S-grade Rs 2,760-2,865 (Rs 2,760-2,865) and M-grade Rs 2,810-3,055 (Rs 2,810-3,055).

Uttar Pradesh rates were: Muzzafarnagar Rs 3,170.