Sugar prices on the Vashi wholesale market declined by Rs 10 for S-grade on Friday. Prices have dropped by Rs 40-80 a quintal this month. The medium grade variety ruled unchanged, following steady naka and mill tender rates. Continuous selling by producers and enough stocks in the market kept volumes low.

“There is no positive sign in the near future for the sugar market. Mills are carrying surplus inventories and the production season is in full swing,” a trader said. Mills have to pay money to farmers for cane, hence are forced to sell even at lower prices. Upcountry and exports demand is also lacking since long, he said. World sugar prices are also not in favour. So, there is sufficient and continuous supply pressure on markets.

Arrivals on the Vashi market were 59-60 truckloads (each 100 bags), while local dispatches were 58-59 loads. On Thursday, 14-15 mills offered tenders and sold 46,000-48,000 bags at Rs 2,620-2,700 (Rs 2,620-2,700) for S-grade and Rs 2,720-2,880 (Rs 2,720-2,880) for M-grade.

Bombay Sugar Merchants Association’s spot rates were: S-grade Rs 2,772-2,955 (Rs 2,782-2,965) and M-grade Rs 2,936-3,082 (Rs 2,936-3,082).

Naka delivery rates were: S-grade Rs 2,730-2,830 (Rs 2,730-2,830) and M-grade Rs 2,830-3,000 (Rs 2,830-3,000).

Uttar Pradesh rates were: Mathura Rs 3,260.