Spot sugar prices ruled weak on Monday at Vashi wholesale market on lack of demand and higher arrivals. In ready prices decline by Rs 4-5 a quintal in the evening. At naka level, price ruled firm by Rs 5-7 in the absence of eased selling at resale level. Mills kept their rates unchanged on usual fresh buying support from stockist and upcountry buyers.

Mr Roshan Murgai of Sugar Supply Co said, at spot level, need-based local demand and higher arrivals put pressure on price. Market is waiting for some reason for positive move as mills are not keen to sell at lower price.

Matters regarding to the value added tax (VAT) and export permission for sugar are the main issues traders are eagerly waiting for any announcement from the government. On the other hand, mills are also not keen to sell at lower rates. Market players are expecting sugar production between 242 lakh tonnes (lt) and 245 lt in the current season year 2010 -2011. Maharashtra is expected to produce 92-94 lt and Uttar Pradesh sugar output will be 62-64 lt. Indigenous demand will be around 225-230 lt. So there will be some surplus quantity available at the end of the season, he added.?

Arrivals in the market were higher. On Saturday, about 17-18 mills came forward with tender offer and sold about 2.25-2.50 lakh bags including two rail rake (about 54,000 bags) in the range of Rs 2,600-2,720 for S-grade and Rs 2,740-2,790 for M-grade. Arrival in the markets was about 55-56 truck loads (each of 100 bags) and local dispatches were at 43-45 truck loads.

The Bombay Sugar Merchants Association sugar rates: Spot rates: S-grade Rs 2,811-2,861 (Rs 2,811-2,861) and M-grade Rs 2,841-2,921 (Rs 2,841-2,921).?Naka delivery rates:?S-grade Rs 2,770-2,800 (Rs 2,760-2,800) and M-grade Rs 2,820-2,880 (Rs 2,810-2,875). ??

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