Agri Business

Sugar gains as local buyers build stocks

Our Correspondent Mumbai | Updated on April 13, 2011

sugar



Sugar prices on the Vashi wholesale market increased Rs 10-15 a quintal on local demand for the summer and firm trend at the mills level on Wednesday.

Mills, in absence of buying by neighbouring States, continued to sell in the local market and on other side, local stockists are active as they believe that current prices are lower.

In fact, sugar prices at mill levels are the lowest this calendar year. Mills are selling to avoid a large inventory. Naka and Mill tender rates also increased by Rs 10-15 on buying support. Morale was positive, said traders.

A spokesman of Bombay sugar merchants association said with more bulk consumers and retailer's fresh demand for summer season, overall sentiment turned positive.

Increase in spot prices is faster than at the mill level as producers carry huge stocks and they have to sell the monthly quota before the due date. During January to March, first fortnights proved dull for producers as prices were lower due to absence of demand.

But this month the mood has changed. The crushing season will end next month and the mills' inventory will be the only source for the market. Festival and marriage season will also provide room for higher demand.

On Tuesday, about 24-25 mills offered tenders and sold around 1.25-1.50 lakh bags (100 kg each) in the range of Rs 2,610-2,650 for S-grade and Rs 2,640-2,715 for M-grade to state level buyers. In other main markets, prices and trade morale was also positive. In Uttar Pradesh, with higher rates, the easy supply-demand position continues.

Today arrivals at the Vashi markets were about 58-60 truckloads (each of 100 bags) and local dispatches were 55-56 truck loads.

Bombay Sugar Merchants Association sugar rates: Spot rates: S-grade Rs 2,751-2,825 (Rs 2,750-2,821) and M-grade Rs 2,800-2,911 (Rs 2,791-2,901).

Naka delivery rates: S-grade Rs 2,710-2,750 (Rs 2,710-2,730) and M-grade was Rs 2,760-2,810 (Rs 2,740-2,800).

Published on April 13, 2011

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