Comments
Spot sugar prices in the Vashi market extended their bearish trend on Wednesday as mills started selling at lower rates in the absence of any announcement regarding exports.
Continued sluggish demand in the main producing States of Maharashtra and Utter Pradesh resulted in a Rs 10 per 100 kg decline in prices in the major consuming markets.
In the Vashi wholesale market, lifting pressure for purchases due on March 10 and 15 weighed on sentiment. At the mill level, selling pressure mounted for carry-over stock from last month, the 15-days' extension for which is approaching. As a result, the naka and mill tender rates fell further by Rs 5 /Rs10 a quintal, said a wholesale trader. Morale was weak.
Mr Jagdish Rawal, Joint Secretary of the Bombay Sugar Merchants' Association, told Business Line: ?Due to the continued absence of local demand at the main consuming markets, along with uncertainty over export permission and sugar production, the sugar market has been witnessing need-based trade volumes since January. The market has witnessed a downward trend in prices and thin volumes in the first fortnight of January and February and the current month also under pressure of high supply. No one in the market wants to carry a big inventory.?
An analyst said the Government has declared 16.84 lakh tonnes of normal free-sale sugar quota for March. With that, the total normal free-sale sugar quota for the first three months of the calendar year adds to more than 50 lakh tonnes. The quota for February was 16.23 lakh tonnes and for January 17 lakh tonnes. Given the lower demand during the winter season, that quota proved to be on the higher side. Mills were not able to offload their given quotas in time, which resulted in an extension of time for unsold quantity since February.
Arrivals in the markets were at usual levels of about 50-52 truck loads (each of 100 bags) and local dispatches were at 46-48 truck loads. About 14-15 mills, by tender offer, sold about 60,000/ 70,000 bags in the range of Rs 2,670 / Rs 2,720 for S grade and Rs 2,725 / Rs 2,775 for M grade. Late evening tender rates were expected Rs 5/Rs 7 lower.
The Bombay Sugar Merchants' Association sugar rates:
Spot rates: S grade Rs 2,801/ Rs 2,856 (Rs 2,801/ Rs 2,851) and M grade Rs 2,841/ Rs 2,916 (Rs 2,846 / Rs 2,916).
The naka delivery rates: S grade Rs 2,760/ Rs 2,790 (Rs 2,770 /Rs 2,810) and M grade Rs 2,810/ Rs 2,850 (Rs 2,815 / Rs 2,850).
Comments
COMMENT NOW
Comments
Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.
We have migrated to a new commenting platform. If you are already a registered user of TheHindu Businessline and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.