Sugar at the Vashi wholesale market remained bearish on Tuesday on higher supplies. Prices in the physical market dropped by Rs 4-10 a quintal tracking weakness at the naka level, where higher selling by resellers pulled down prices by Rs 10-20. Mill tender rates declined by Rs 10-30 on higher selling. Prices in other producing centres were also low.

Bombay Sugar Merchants Association Secretary Mukesh Kuwadia said Lower demand after Navaratri-Dussehra and need-based buying by stockists, who have sufficient stocks, kept volumes low. Prices are expected to decline further, as the Union Government has declared 40 lakh tonnes of free-sale quota for October and November.

Prices in other producing centres such as Uttar Pradesh are ruling on par with those in Maharashtra. A weak world market has made exports difficult. Domestic demand is less than expected and offtake from neighbouring States is low.

On the National Commodities and Derivatives Exchange, December futures was up to Rs 3,331 (Rs 3,321), January to Rs 3,347 (Rs 3,342) and February to Rs 3,374 (Rs 3,342).

In the Vashi spot market, 68-70 truckloads (each of 100 bags) arrived and 64-65 truckloads were locally despatched. On Monday evening, 18-20 mills offered tenders and sold about 58,000-60,000 bags (each of a quintal) to local traders at Rs 3,340-3,390 (Rs 3,360-3,400) for S-grade and at Rs 3,430-3,500 (Rs 3,450-3,530) for M-grade.

Bombay Sugar Merchants Association’s spot rates: S-grade Rs 3,472-3,552 (Rs 3,476-3,552) and M-grade Rs 3,532-3,701 (Rs 3,542-3,711).

Naka delivery rates: S-grade Rs 3,420-3,450 (Rs 3,440-3,460) and M-grade Rs 3,500-3,625 (Rs 3,500-3,630).

(This article was published on November 6, 2012)
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