Sugar spot prices may fall further in the next few days mainly on sluggish demand from retailers and upcountry traders amid steady inflows from mills.
Sugar spot prices were Rs 10-15 down to Rs 1,321/1,376 per quintal for Small-30 grade and Rs 1,385/1,500 for Medium-30 grade at Vashi APMC over previous day.
Check post delivery prices were also down by Rs 10 per quintal on steady supplies from mills. Spot prices of medium grade (M-grade) in Muzffarnagar (UP) fell by Rs 44 to trade around Rs 1,409 per quintal on Tuesday over Rs 1,453 a quintal on July 2 on steady inflows from mills against dull offtake from retailers. The government announced free sale sugar quota of 13 lakh tonne for the current month. Of which, the government allotted about 43 lakh bags to Maharashtra mills. Carryover stock of 6-7 lakh bags for July free sale quota may add to current months? supply, a local broker said. ?Local demand from retailers was dull. Prices may fall further in the absence of fresh demand. Festival buying will start from second half of the current month,? Mukesh Kuvadia, a leading sugar dealer said. Fresh tenders from local mills were quoted around Rs 1,230-1,260 for small grade and Rs 1,275-1,325 per quintal for medium grade.On the NCDEX platform, sugar August 2007 contracts (M-grade) were down 7% on Tuesday.