Sugar prices dropped sharply by more than Rs 100 a quintal across the country on release of additional four lakh tonnes of non levy sugar quota . Additional quota has led to heavy selling pressure in physical and futures market which kept volume arrested. Stockists and retailers kept away from fresh Volume was lower compare to previous day. Sentiment was weak said wholesalers.
A Vashi-based wholesaler told Business Line: “Release of additional 4 lakh tonnes of non levy quota for the August has positively reflected in markets with decline of more than Rs 100 in spot, naka and tender level. There are chances of ban on sugar exports. All this will definitely improve the supply position in local market and keep prices under check in coming days”.
Analysts said considering deficient rain this year, concern about the sugarcane crops mostly lower than initially expected and almost month delay in start of new season additional supply of commodity will surely help to stabilise the prices in the open market. On export front, recent decline in prices has reduced the possibilities for more exports from India. Though new crushing season is two months away and at local level festivals season till December will have higher consumer demand in this situation government has taken timely decision in favour of consumers.
In Vashi market, arrivals were 54-55 truck loads (of 100 bags each of quintal ) and local dispatches were about 50-51 truck loads. On Tuesday, only 6-7 mills sold about 18,000 – 20,000 bags (of 100 kg each) sugar to local stockists in the range of Rs 3,420-3,480 (Rs 3,530-3,600) for S-grade and Rs 3,500-3,540 (Rs 3,600-3,650) for M-grade.
Bombay Sugar Merchants Association's spot rates: S-grade Rs 3,512-3,621 (Rs 3,611-3,721) and M-grade Rs 3,581- 3,711 (Rs 3,681- 3,831). Naka delivery rates: S-grade Rs 3,480 -3,510 (Rs 3,580-3,620) and M-grade Rs 3,570-3,670 (Rs 3,650-3,700).