Sugar prices on the Vashi wholesale market ruled unchanged on Friday despite higher supplies from mills. Prices were steady at the spot level, while the S-grade variety was Rs 10 a quintal higher at the naka level. Mill tender rates dropped by Rs 5-10 a quintal on lower-than-expected demand. Traders were optimistic that demand will rise for Diwali from next week. Futures were bearish putting pressure on the physical market, said sources.
Mills are selling to exhaust to meet their free-sale quota deadline, while fewer new orders are coming as demand is low after Navaratri, sources said. Hence, stockists kept away from buying. Currently, Vashi has 100-110 truckloads of sugar. Prices in other producing States such as Uttar Pradesh and Karnataka are ruling at a par with those in Maharashtra. As a result, Maharashtra’s producers have had to depend on the local market. Despite delay in crushing season and expectation of lower production in 2012-2013 in Maharashtra, prices are under pressure due to higher quota allocation for October-November. The State Government expects a 40 per cent drop in output compare with last year.
On the National Commodities and Derivatives Exchange, December futures were down to Rs 3,300 (Rs 3,307), January to Rs 3,311 (Rs 3,316) and February to Rs 3,330 (Rs 3,348).
In the Vashi spot market, 67-68 truckloads (each of 100 bags) arrived and 65-66 truckloads were despatched locally. On Thursday evening, 19-20 mills offered tenders and sold 84,000-85,000 bags (each of a quintal) to local traders at Rs 3,370-3,410 (Rs 3,370-3,420) for S-grade and Rs 3,450-3,530 (Rs 3,450-3,540) for M-grade.
Bombay Sugar Merchants Association’s spot rates: S-grade Rs 3,490-3,562 (Rs 3,492-3,562) and M-grade Rs 3,552-3,711 (Rs 3,552-3,711).
Naka delivery rates: S-grade Rs 3,450-3,480 (Rs 3,440-3,480) and M-grade Rs 3,500-3,650 (Rs 3,500-3,650).