Sugar prices on the Vashi wholesale market continued their bearish trend on Tuesday. Prices in spot market lost further by Rs 14-20 a quintal on higher supply and eased demand.
Naka rates ruled steady while mill tender rates for fair - normal quality dropped by Rs 10-15. Regular supply from mills to exhaust sales of non-levy quota in time kept prices under pressure.
Jagdish Rawal, a Vashi-based wholesaler, said: “Continuous supply from mills in local markets and eased demand for Navaratri – Dasara and month-end time pulled down spot prices further. Now fresh demand for Diwali is expected from 1st week of November. ”
Analysts said due to sufficient free sale quota sugar prices witnessed a steady decline this month. Due to higher festival demand, prices in the spot market declined by Rs 110-130 while at mill level it dropped by Rs 170-180 for a quintal.
In Vashi spot market, arrivals continued at 68-70 truck loads (each of 100 bags) and local dispatches were about 66-67 truck loads.
On Monday evening, 20-22 mills offered tenders and sold 78,000-80,000 bags (each of 100 kg) to the local traders in the range of Rs 3,340-3,400 (Rs 3,355-3,410) for S-grade and Rs 3,400-3,530 (Rs 3,410-3,530) for M-grade.
Bombay Sugar Merchants Association's spot rates: S-grade Rs 3,492-3,566 (Rs 3,492-3,552) and M-grade Rs 3,542-3,701 (Rs 3,582- 3,701).
Nakadelivery rates: S-grade Rs 3,440-3,460 (Rs 3,440-3,460) and M-grade Rs 3,480-3,650 (Rs 3,480-3,650).