Sugar prices on the Vashi market extended further loss on Thursday tracking bearish futures markets and eased physical demand. Spot prices declined by Rs 4-5 for S-grade, while M-grade ruled unchanged. Naka level S-grade sugar dropped by Rs 10-15 and M-grade by Rs 20.

Mill tender rates for M-grade dipped by Rs 20. Volume remained normal on ample supply from mills. Sentiment was calm at lower level.

Sources said continuous supply from mills in absence of bulk demand business became routine this month. Neighbouring States buying is lacking since long in Maharashtra forcing producers to concentrate on local markets. Prices in other centres are ruling at par with Maharashtra. Vashi market carries ample inventory stocks of more than 100 truckloads hence stockists keep away from building new inventory. Though freight rates have increased by Rs 5-10 a bag, they have had no effect on the prices due to poor demand.

In Vashi market, arrivals were 64-65 truckloads (each of 100 bags) while dispatches were 62-63 loads. On Wednesday about 15-17 mills offer tenders and manage to sell about 64,000 - 65,000 (each of 100 kgs) bags to local traders at the rates of Rs 3,170-3,250 (Rs 3,170-3,250) for S-grade and Rs 3,240-3,340 (Rs 3,260-3,340) for M-grade.

On National Commodities and Derivatives Exchange, January futuresdropped by Rs 16 to Rs 3,253 (Rs 3,269), February to Rs 3,308 (Rs 3,323) and March to Rs 3,360 (Rs 3,358).

Bombay Sugar Merchants Association's spot rates: S-grade Rs 3,312-3,391 (Rs 3,316-3,391) and M-grade Rs 3,412-3,561 (Rs 3,412- 3,561).

Nakadelivery rates were: S-grade Rs 3,270-3,300 (Rs 3,280-3,315) and M-grade Rs 3,350-3,450 (Rs 3,350-3,480).

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