Spot sugar prices on the Vashi wholesale market showed weak trend on Tuesday as resellers were active, though they sold at prices below those quoted by producers.

Spot rates declined by Rs 10. Naka and mill tender rates were down by Rs 15-Rs 20 a quintal. The sentiment was weak ahead of Wednesday's market closure for Shivratri .

Mr Tokershi Dedhia of Surya Traders said: “Mills are not very keen to sell at lower price due to high cost and to avoid loss of margin. Fresh local demand was diverted to resale trade because of lower price. This kept volume at mill level thin, need based and limited. In March, the rising temperature and demand for Holi will arrest fall in price. Buying by neighbouring States may also start. Market may stabilise at current price level.”

Mr Roshan Murgai of Sugar Supply Co said the market will see range-bound price movement as traders are not taking fresh position on outstanding purchases and on easy supply from mills.

Carryover stocks of 3.50 lakh tonnes of February non-levy quota and current month's 13 lakh tonnes normal quota are sufficient to meet the local demand. In January and February, the first fortnight witnessed bearish sentiment and price declined due to higher supply and lower demand. This month the market will observe easy supply position, he said.

On Monday evening 8-10 mills came forward with open tender offers and sold limited quantity of 35,000-40,000 bags in the range of Rs 2,670-2,700 for S-grade and Rs 2,720-2,770 for M-grade. Most mills kept tender offers open, holding their rates.

Arrivals in the markets were at the usual 45-48 truckloads ( 100 bags each) and local dispatches were at 46-47 truckloads.

Bombay Sugar Merchants Association sugar rates : Spot rates: S-grade Rs 2,800-2,861 (Rs 2,801-2,861) and M-grade Rs 2,841-2,921 (Rs 2,851-2,926). Naka delivery rates: S-grade Rs 2,760-2,800 (Rs 2,780-2,800) and M-grade was Rs 2,820-2,865 (Rs 2,820-2,880).

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