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The sugar market rebounded on Friday from lower levels on expectations that the Government would soon give permission to export more. Spot prices at the Vashi terminal market were up by Rs 10-15 a quintal, in line with the increase in Naka -Mill tender rates by Rs 15-20 for S-grade and Rs 25-30 for M-grade.
Volumes improve
Volumes improved on increased retail demand. The sentiment in the market was firm as mills increased the rates for quality sugar. Tender rates ruled firm as mills were not very keen to sell at lower rates, a wholesaler in the Vashi market said.
Mr Jagdish Rawal of B. Bhogilal & Co, said that considering the lower price and improved sentiment, upcountry buyers have started buying.
In the last two days about 27,000 bags (each 100 kg) were sold by mills to neighbouring States. On Thursday, mills sold about 85,000-90,000 bags to local traders at Rs 2,460-2,500 for S-grade and at Rs 2,495-2,590 for M-grade. Freight rates at producing centres ruled steady as the required number of trucks was not available on time, upsetting dispatches.
Increased daily volumes this week indicate active buying interest. In the first fortnight of the current month, sugar prices declined by Rs 80-90 a quintal.
Since January sugar prices have dropped Rs 350-400 on expectation of higher domestic production and restricted demand. Also, the sharp drop in prices in the export market reduced the possibility of exports for some time. Now, however, the chances of exports are looking brighter.
According to sources, 28-30 mills have sold 1.25-1.50 lakh bags of sugar (100 kg each) at Rs 2,460-2,495 for S-grade and Rs 2,490-2,590 for M-grade. Arrival in the market was 48-49 truckloads (each of 100 bags) and local dispatches were higher at 50-52 truckloads.
Bombay Sugar Merchants Association rates : Spot rates: S grade, Rs 2,600-2,651 (Rs 2,582-2,641); and M grade, Rs 2,661-2,801 (Rs 2,646-2,791).
Naka delivery rates : S grade, Rs 2,555-2,605 (Rs 2,540-2,580); and M grade, Rs 2,625-2,760 (Rs 2,600-2,660).
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