Spot sugar on the Vashi wholesale market lost Rs 5-6 a quintal for S-grade, while it gained Rs 4-6 for M-grade on Monday. Naka and mill tender rates were unchanged. Supplies from mills continue even as demand remains tepid. Futures were range bound.
Demand from other States for Maharashtra’s produce has been absent for long, which has increased supply in local markets, said Vashi-based wholesaler Jagdish Rawal. Prices in Uttar Pradesh, Madhya Pradesh, Karnataka, Rajasthan and Gujarat are ruling on par with those in Maharashtra.
Retail demand in Maharashtra is low, keeping volumes need based. Vashi has more than 100 truckloads of stocks forcing stockists to keep away from fresh bulk buying. The free-sale quota for December-March at 70 lakh tonnes is more than sufficient. However, domestic prices are not expected to not fall below Rs 3,200 a quintal at the mill level, as higher fair remunerative prices for cane for the current year has raised costs.
The export market sentiment has weakened due to higher supply from world’s top producer Brazil.
On the National Commodities and Derivatives Exchange, January contracts were down to Rs 3,290 (Rs 3,293), February to Rs 3,337 (Rs 3,339) and March to Rs 3,371 (Rs 3,369) till noon. In Vashi, 64-65 truckloads (each of 100 bags) arrived while 60-62 truckloads were despatched. On Saturday, about 14-15 mills offered tenders and sold 56,000-58,000 bags (each of a quintal) to local traders at Rs 3,200-3,270 (Rs 3,200-3,270) for S-grade and at Rs 3,270-3,340 (Rs 3,270-3,340) for M-grade.
Bombay Sugar Merchants Association’s spot rates: S-grade Rs 3,326-3,411 (Rs 3,332-3,411) and M-grade Rs 3,416-3,561 (Rs 3,412-3,556).
Naka delivery rates were: S-grade Rs 3,270-3,320 (Rs 3,270-3,320) and M-grade Rs 3,370-3,500 (Rs 3,370-3,500).