Agri Business

Subdued demand weakens sugar prices

Our Correspondent Mumbai | Updated on September 29, 2020 Published on September 29, 2020

Despite there being sufficient quota for the festive season at 23 lakh tonnes, subdued bulk and local demand weakened sugar prices further by ₹10-15 at Vashi on Tuesday. Maharashtra’s mills sold the commodity at ₹10 lower due to the slack demand. The undercurrent of the market remained steady on expectation of higher festival demand along with bulk demand arising from the opening of hotels and restaurants, sources said.

Sources said as producers have offloaded/sold almost all of the 22 lakh tonnes of the August quota, very few mills offered tenders on the previous day. Global sugar prices are also in favour of India’s exports, which will easily fulfil the export target of 60 lakh tonnes for the current year with the benefit of the sugar export subsidy.

Arrivals at Vashi were about 28-30 truckloads (each of 10 tonnes) and local dispatches were at the same level. Inventory was about 95-100 truckloads. Freight rates were steady ₹80-100 per bag.

On Monday evening, hardly 10-12 mills offered tenders and sold about 18,000-20,000 bags at ₹3,120-3,200 (₹3,130-3,200) for the S-grade and ₹3,210-3,300 (₹3,220-3,300) for the M-grade.

Bombay Sugar Merchants Association’s spot rates (₹/quintal): S-grade ₹3,272-3,342 (₹3,280-3,352) and M-grade ₹3,382-3,492 (₹3,386-3,492).

Naka delivery rates (₹/quintal): S-grade ₹3,230-3,280 (₹3,240-3,290) and M-grade ₹3,320-3,380 (₹3,330-3,390).

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Published on September 29, 2020
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