Sugar prices in the Vashi terminal market declined by Rs 10-20 due to weak local demand and higher sales by producers. Naka rates were down Rs 10-20 a quintal as mill tender rates fell by Rs 20-30. In the ready market, prices improved by Rs 5-10. Millers continue to sell in the local markets in absence of demand from neighbouring States. Local retail offtake has dropped after Diwali. Futures were range bound with a bearish trend. Over the last week, spot and futures prices have declined by Rs 50-60 a quintal in absence of demand. There is scope for exports as of now and North India mills are worried where they will sell their stock, as white sugar is reportedly being imported from Pakistan to Punjab. Sugar in Uttar Pradesh is ruling on a par with Maharashtra.
At present, Vashi has more than 110 truckloads, more than the demand seen during the month. The Union Government has declared 70 lakh tonnes of non-levy sugar quota to be sold between December and March. The allocation comprises 66 lakh tonnes of normal quota, 2 lakh tonnes of unsold non-levy stocks from the October-November allocation and 2 lakh tonnes of levy conversion quota.
According to the Directorate of Sugar’s press release, the sale and delivery-despatch period will be from December 1 to March 31, without any monthly restrictions. The extended period for the sale and delivery-despatch of the unsold stocks of October-November quota will be up to December 10.
The release said 62 lakh tonnes of the normal quota would be immediately prorated and released to the 502 mills which have reported data regarding production, despatches, stocks, etc., up to November 23. The balance will be prorated and released around January 20 to meet requirements of the mills which have not yet registered with the Directorate, have not submitted the production data as on October 31, have opened recently, or have reopened for production.
On the National Commodities and Derivatives Exchange, December contracts were at Rs 3,290 (Rs 3,290), January at Rs 3,299 (Rs 3,295) and February at Rs 3,315 (Rs 3,314).
In Vashi, 65-66 truckloads (each of 100 bags) arrived and local despatches were lower at 62-63 truckloads. On Monday, 12-13 mills offered tenders and sold about 14,000-15,000 bags (each of a quintal) to local traders at Rs 3,290-3,350 (Rs 3,300-3,370) for S-grade and at Rs 3,340-3,430 (Rs 3,350-3,450) for M-grade.
Bombay Sugar Merchants Association’s spot rates: S-grade Rs 3,432-3,512 (Rs 3,415-3,510) and M-grade Rs 3,486-3,701(Rs 3,480-3,700).
Naka delivery rates: S-grade Rs 3,360-3,400 (Rs 3,360-3,410) and M-grade Rs 3,400-3,500 (Rs 3,410-3,480).