The sugar market continued to rule weak as producers continued to sell at low prices on Tuesday. Spot prices on the Vashi wholesale market dropped by Rs 10 and Rs 24 a quintal on the higher side for both medium and small varieties. On the lower side, higher offtake resulted in prices rising by Rs 5-10.

Naka rates were unchanged. Mills sold at a price Rs 5-10 lower. The volume was routine, as demand dropped due to cold weather across the country.

Since Diwali, sugar prices have been bearish on lack of demand in domestic and export markets. Higher inventory with mills and in the market is continuously putting pressure, said Vashi-based traders.

This is particularly when inventories at the Vashi market have increased to 115-120 truckloads (10 tonnes) compared with 110 last week.

Arrivals at the Vashi market were 61-62 truckloads, while local dispatches were 59-60 loads. On Monday, 19-20 mills sold 64,000-65,000 bags (100 kg each) at Rs 2,630-2,730 (Rs 2,630-2,730) for S-grade and Rs 2,730-2,920 (Rs 2,730-2,920) for M-grade.

The Bombay Sugar Merchants Association’s spot rates were: S-grade Rs 2,842-2,975 (Rs 2,842-2,951) and M-grade Rs 2,950-3,122 (Rs 2,940-3,132). 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.