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Sugar prices continued to rally, gaining further by Rs 35-40 a quintal at the Vashi wholesale market on Friday. Naka prices increased by Rs 40-70 on lower resales. Mills sold at Rs 30-40 higher as producer’s held back sales at lower rates following higher demand. Tracking the firm spot market, prices on the domestic futures market rose by Rs 30-35 taking total gain to Rs 85 in the last two days.
A Vashi-based wholesaler told Business Line: “Despite ample stocks in the market stockists continued to build inventories, expecting higher demand amid lower production this year compare with initial estimates.”
According to the Indian Sugar Mills’ latest data, production this season to September would be lower at 238 lakh tonnes compared with initial estimate of 250 lakh tonnes and 251 lakh tonnes last year. Last month’s announcement of Rs 3,300 subsidy for raw sugar exports is also lending support to the commodity.
Arrivals at Vashi market increased to about 66-67 truckloads (each 100 bags) and the local dispatches were higher at 63-64 loads. On Thursday evening 20 -21 mills offered tenders and sold more than one lakh bags at Rs 2,640-2,750 (Rs 2,600-2,710) for S-grade and Rs 2,820-2,910 (Rs 2,790-2,880) for M-grade.
Bombay Sugar Merchants Association's spot rates were: S-grade Rs 2,820- Rs 2,912 (Rs 2,780-Rs 2,872) and M-grade was Rs 2,920- 3,052 (Rs 2,900-3,022).
Naka delivery rates were: S-grade Rs 2,820 -2,900 (Rs 2,780-2,850) and M-grade Rs 2,920-3,020 (Rs 2,850–Rs 2,960).
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