Despite routine retail demand, sugar prices at Vashi market shot up sharply by about Rs 100 a quintal on Monday hitting a new high in the current year. Prices at mills continued to head north on expectation of higher demand and strong futures markets. Mills sold sugar at Rs 100-120 higher on Saturday evening pushed up naka rates by Rs 90-100 for S-grade and Rs 60-70 for M-grade.
In physical market, prices rose by Rs 70-90, crossing Rs 3,400 mark first time in this year. Mill tender rates are expected to be higher further, said market observers.
A spokesman of Bombay Sugar Merchants Association said, there is good demand from local and upcountry traders ahead of festivals in Maharashtra. Second, according totraders, 45 lakh tonnes quota for July to September is lower than demand and it can be easily sold during the festival season. Free sale quota for July to September is unchanged from the previous quarter.” Erratic monsoon rains over two main cane-growing states may reduce the 2012-13 output by 19-20 per cent, but the overall crop is likely to see a surplus.
Sugar prices in domestic futures market were up by more than Rs 50. Extension given by government for selling balance unsold quota of April-June till August 15 to the mills has supported the bullish sentiment further.
In Vashi market, arrivals were 51-52 truck loads and local dispatches were 54-55 truck loads. On Saturday evening, about 14-15 mills offered tender and sold about 84,000–85,000 bags (each 100 kg) to the local stockists in the higher range of Rs 3,170-3,230 (Rs 3,090-3,150) for S-grade and Rs 3,290-3,310 (Rs 3,170-3,210) for M-grade.
Bombay Sugar Merchants Association’s spot rates: S-grade Rs 3,270-3,350 (Rs 3,182 -3,276) and M-grade Rs 3,320- 3,411 (Rs 3,266- 3,351). Naka delivery rates: S-grade Rs 3,250 -3,300 (Rs 3,160 -3,200) and M-grade Rs 3,290-3,370 (Rs 3,230-3,300).