Sugar prices in Maharashtra increased by more than Rs40 a quintal on Friday after government decided to decontrol the sugar sector previous day late evening. Though there no tenders offered by producers Thursday evening but following the government’s announcement millers offered sale tenders on Friday Rs40 – Rs50 higher which lift naka price by same margin.
Sources said as Mumbai’s Vashi market traders are on indefinite strike there were no fresh commitments either at upper – mills level or at retail level. There were no new arrivals and local dispatches. Retail shopkeepers are having sufficient stocks to meet consumers demand till Monday as they have covered good quantity in begging of the week. Vashi sugar market is on strike since Thursday.
Mean while sugar futures prices on National Commodities and Derivatives Exchange extended previous day’s gain but later part profit booking selling cap the rise. Till noon futures prices were slightly up.
Vashi based wholesaler said “Vashi APMC complex except vegetable and fruit market will remain closed till Saturday. So far sugar merchants are concern they will continue indefinite strike till the state government short out Local Body Tax (LBT) issue. Members of Bombay Sugar Merchants Association will meet on Saturday evening to assess the situation as there is a possibility of some way out in the traders meeting to be held with state government Friday evening. Traders in Pune were also on strike for the fifth consecutive day”.
Mr. Ajit Sethia president of Poona Merchants Chamber said “the main issue is that small traders will come under LBT purview and be required to maintain books of accounts as the lowest slab under the LBT is an annual turnover of Rs1 lakh virtually a minimum wage”.
On National Commodities and Derivatives Exchange sugar May-13 futures were up by Rs3 to Rs 3011 (Rs 3008), June -13 contracts was steady at Rs3072 (Rs3071) and July-13 was higher by Rs14 to Rs 3130 (Rs 3116) till noon.