New Delhi: Wholesale sugar prices on Monday dipped by Rs 50 a quintal in Delhi, while rates were lower by Rs 10 per quintal in Mumbai, thanks to higher supply from mills amid sluggish demand.
In Delhi, the wholesale price (including all taxes) of M-30 sugar variety fell by Rs 50 to Rs 3,900 per quintal from its last closing.
In Mumbai`s Vashi, the country`s biggest wholesale market, the price of M-30 variety declined by Rs 10 to Rs 4,000 per quintal.
Traders said ample supply from mills against reduced demand from stockists and retailers was the reason for prices easing.
There has been a moderate fall in the wholesale prices of the sweetener in these two cities since January 13 when the government announced steps to rein in prices after the retail rates went up to Rs 50 a kg.
In the past 13 days, the wholesale prices have declined by Rs 400 a quintal in Delhi and by nearly Rs 120 per quintal in Mumbai, according to trade data.
Meanwhile, the retail price is Rs 45/kg in Kolkata, Rs 44/kg in Delhi, Rs 43/kg in Mumbai and Rs 42/kg in Chennai on Monday, the official data showed.
India, the world`s largest consumer of sugar, is estimated to produce nearly 16 million tonnes of sugar against the annual demand of 23 million tonnes. The gap of 7 lakh tonnes is being met through imports.