Sugar prices on the Vashi wholesale market continued to rise for the second day, taking cues from firm futures market and fresh retail demand.

On Friday, spot rates rose by Rs 10 and naka delivery rates increased by Rs 15-20. The sentiment was steady as the Government has declared higher free sale quota of 17 lakh tonnes for current month, which is believed to be high for State's mills to offload fully, said sources.

Mr Jagdish Rawal, a wholesale trader told Business Line : “This month sugar prices have declined Rs 90-100 in the first 12 days due to lower demand and higher free sale quota. Prices recover in last two days because of bounce back in future market, higher price in foreign market (over $800) due to flood in the main producing country Brazil and at local level mills' unwillingness to sell in line with market scenario.

“So, in the coming days, higher free sale quota's selling pressure is bound to mount on mills. Sugar prices may not run away, but may see some support at present level with local/State level demand.”

Meanwhile, sugar production till now this season in Maharashtra has been estimated about 85-90 lakh tonnes compared with 78-80 lakh tonnes in the corresponding period last year.

For the season year 2010-2011, total sugar production in the country is estimated at 245-250 lakh tonnes, said industry sources.

According to the Bombay Sugar Merchants Association, spot sugar rates were S-grade Rs 2,881-2,936 (Rs 2,891-2,931) and M-grade Rs 2,916-2,991 (Rs 2,911-2,991). Naka delivery rates were S-grade Rs 2,850-2,880 (Rs 2,840-2,860) and M-grade Rs 2,900-2,930 (Rs 2,880-2,920).

Related Topics
comment COMMENT NOW