Sugar prices on the Vashi wholesale market declined by Rs 10 a quintal on Wednesday as demand eased and the Government’s assurance on regular and ample supply of non-levy sugar during October – November. Naka rates declined by Rs 10, while mill tender rates dropped by Rs 10-20 .

Sources said that the sentiment turned slightly weak in physical and futures markets on improved selling after the Government’s instructions. Though demand – supply was routine as celebration of Navaratri is on and Dasara falls next week. Producers expect a steady rise in demand the next few days for Diwali. The Vashi market currently carries sufficient inventory of more than 100 truckloads hence local supply is ample.

The Ministry of Consumer Affairs, Food & Public Distribution has asked sugar mills to ensure release of the entire quota for the festival season. According to a press release issued by the Ministry, an impression has been created in some circles that the non-levy quota of 40 lakh tonnes released for sale in the months of October and November would get extended. Such views were a misconception and any unutilised quota qould be convered into levy stock, it said.

In Vashi market, arrivals were about 68-70 truckloads (each of 100 bags of quintal each) and local dispatches were about 64-65 loads. On Tuesday evening, about 19-20 mills offered tenders and sold nearly one lakh bags (each of 100 kg) to the local traders in the range of Rs 3,390-3,450 (Rs 3,400-3,460) for S-grade and Rs 3,470 - 3,560 (Rs 3,480 - 3,580) for M-grade.

The Bombay Sugar Merchants Association's spot rates: S-grade Rs 3,526 – Rs 3,582 (Rs 3,561 – Rs 3,591) and M-grade Rs 3,611- 3,701 (Rs 3,582- 3,711).

Nakadelivery rates: S-grade Rs 3,500 -3,540 (Rs 3,510 -3,550) and M-grade Rs 3,550-3,660 (Rs 3,560-3,670).

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