Sugar prices dropped further by Rs 10 a quintal at the mill level on Friday, as the new season’s produce sold at lower rates.
Producers who were offering new season stocks at Rs 80-100 higher than the old stocks a fortnight ago have now cut the premium to Rs 30-40 a quintal. Spot and naka rates ruled steady.
A spokesman of B. Bhogilal and Co. said: “The market was dull due to ample supply as mills continued to sell to ease stocks. The crushing season has begun around the country and prices in other main producing centres are ruling on a par with those in Maharashtra. Upcountry buyers are sourcing their needs locally hence producers here are forced to sell in local markets. Vashi market currently carries more than 100 truckloads.”
According to the Indian Sugar Mills Association, production in Karnataka rose by 17 per cent to 15.5 lakh tonnes and in Andhra Pradesh by 12 per cent to 3.28 lakh tonnes till December-end.
Top producers Maharashtra and Uttar Pradesh produced 29 lakh tonnes (4 per cent higher year-on-year) and 19.2 lakh tonnes (11 per cent higher year-on-year) respectively.
In Vashi, 61-62 truckloads (each of 100 bags) arrived, while 60-61 loads were despatched. On Thursday, merely 10-12 mills sold 38,000-40,000 bags (each of a quintal), through tenders at Rs 3,140-3,180 (Rs 3,140-3,190) for S-grade and at Rs 3,250-3,290 (Rs 3,260-3,290) for M-grade.
On the National Commodities and Derivatives Exchange, the February contract declined Rs 3,267 (Rs 3,277), March to Rs 3,300 (Rs 3,310) and April to Rs 3,350 (Rs 3,354) till noon.
Bombay Sugar Merchants Association’s spot rates: S-grade Rs 3,266– Rs 3,342 (Rs 3,266 – Rs 3,342) and M-grade Rs 3,351 - 3,511 (Rs 3,351- 3,511).
Naka delivery rates: S-grade Rs 3,220-3,260 (Rs 3,220-3,260) and M-grade Rs 3,300-3,400 (Rs 3,300-3,400).