Sugar fell by Rs 10 a quintal on the Vashi wholesale market on Monday despite firm futures.
Prices in the spot market declined by Rs 10 a quintal for M-grade, while at the naka level dropped by Rs 10 for S- and M-grade. Mill tender rates were down Rs 10 a quintal. Mill prices dropped by Rs 10-20 a quintal in Uttar Pradesh.
Demand from other States was lower in Maharashtra as prices in other States were lower or at the same level, said Jagdish Rawal of B. Bhogilal and Co., a wholesaler in Vashi.
Supplies from mills have risen after the Union Government warned mills of consequences if they failed to exhaust their free-sale quota in time and asked them to submit crushing, production and despatches data.
The free-sale quota for October-November is 40 lakh tonnes compared with a usual monthly allocation of about 17-18 lakh tonnes.
On the National Commodities and Derivatives Exchange, December contracts were up Rs 3,335 (Rs 3,322), January to Rs 3,347 (Rs 3,327) and February to Rs 3,366 (Rs 3,350).
In the Vashi spot market, 69-70 truckloads (each of 100 bags) and 67-68 truckloads were despatched locally.
On Saturday evening, 16-17 mills offered tenders and sold 48,000-50,000 bags (each of a quintal) to local traders at Rs 3,360-3,400 (Rs 3,370-3,410) for S-grade and Rs 3,450-3,530 (Rs 3,450-3,530) for M-grade.
The Bombay Sugar Merchants Association’s spot rates: S-grade Rs 3,476-3,552 (Rs 3,476-3,552) and M-grade Rs 3,542-3,711 (Rs 3,552-3,711).
Nakadelivery rates: S-grade Rs 3,440-3,460 (Rs 3,450-3,470) and M-grade Rs 3,500-3,630 (Rs 3,500-3,640).